The 24-year-old joined Sao Paulo on a season-long loan last summer.

Sao Paulo president Juvenal Juvencio has admitted that the club are unable to afford the midfielder's transfer fee, but could keep the midfielder on loan.

"Denilson won't stay," Juvencio told UOL. "Arsenal want €6million (£4.9million) for him, but we won't pay that so we expect him to leave soon.

"Of course we will try to get the loan deal extended for another year, but it won't be easy."