Arsenal's hopes of signing Arthur on loan from Juventus have been dashed in a blow which will force Mikel Arteta to adjust his January transfer window strategy.
Arthur, 25, emerged as a Gunners target last week as Arteta looks to bolster his midfield and mount a charge for Champions League qualification during the Premier League run-in.
Central midfield has been a problem area in the Spaniard's youthful squad throughout the campaign, and former Barcelona ace Arthur would bring title-winning experience to the Emirates.