Arsenal have reportedly decided against challenging Manchester United for the signature of Barcelona midfielder Cesc Fabregas.
The Spain international, who left the Gunners in 2011 for Camp Nou, had been linked with a possible return to the Emirates Stadium as the North London outfit have the first option on the 26-year-old if he decides to move back to the Premier League.
United have reportedly made their interest known by lodging a £26m bid for the midfielder, who previously claimed that it would be "absurd" to leave Barcelona this summer.
Despite Arsenal having a £25m buyback clause, manager Arsene Wenger will instead opt to take half of the transfer fee due to an agreed 50% sell-on, according to the Daily Star.
United turned their attention to Fabregas after missing out on signing Barcelona's Thiago Alcantara, who moved to Bayern Munich.