Sead Kolasinac will return to Arsenal this summer after German side Schalke opted against a permanent move for the defender.
Kolasinac, 27, joined Schalke on loan in January after falling down the pecking order in north London.
With Kieran Tierney occupying the left-back position under Mikel Arteta, it was hoped Kolasinac would impress in Germany and earn a summer move worth around £7.2million.
But according to football.london, Schalke chiefs have now ruled out a deal for the Bosnian international.
Speaking about their decision not to sign Kolasinac, club director Peter Knabel said: “It hurts us both in sport and human terms. In view of the current budget and squad structure – all the known and publicly discussed challenges – there was no alternative.
“We have to be so honest. In view of the short preparation and the early start of the season, we cannot afford a week-long hang-up game either, but have to make decisions for Schalke now.
“That’s why we decided on this clear cut.”
Arsenal signed Kolasinac from Schalke on a free transfer four years ago. Gunners officials were hoping to make a profit on the player as he’s surplus to requirements at the Emirates.
But a permanent move will no longer come from the German outfit.
Kolasinac played 17 times in the Bundesliga after securing his loan switch.
He scored one goal as Schalke were relegated on 16 points. Next season will be their first campaign out of the top flight since 1990/91, so their financial worries are understandable.
It remains to be seen where Kolasinac will be playing next term. It’s unlikely he’ll be able to oust Tierney in the starting eleven following the Scotsman’s impressive performances.
He could operate as cover, but the player may want more of a challenge.
Kolasinac isn’t the only Arsenal squad member nearing an Emirates exit.
Eddie Nketiah is wanted by London rivals West Ham, while Matteo Guendouzi has apparently decided on a move to Marseille.
Hector Bellerin continues to be linked with a Paris Saint-Germain switch, meaning Norwich’s Max Aarons could be signed as his replacement.
The England starlet is worth around £30million.