Vinícius Júnior is expected to remain at Real Madrid after positive contract talks on Wednesday produced an improved offer in excess of £19 million per year, with the club awaiting a response within hours. The proposal follows months of stalled negotiations and a call from head coach José Mourinho urging the forward to commit his future to the club.
Arsenal, who had identified Vinícius as their priority left-wing target, now believe a departure is increasingly unlikely. The London club are instead set to complete a £75 million deal for Newcastle's Bruno Guimarães, with the midfielder given permission to travel for a medical.
Vinícius, who has scored 128 goals in 375 appearances, entered the final year of his contract this summer. Real Madrid had been prepared to sanction a sale for around €150 million had talks collapsed.