Arsenal have been dealt a major blow in the chase for Celta Vigo star Nolito, who is now set to sign a new contract with the La Liga club, according to reports from the Mirror.
Nolito has been heavily linked with a move away from Celta in recent weeks, with the Gunners and European champions Barcelona keen on his services.
And it seemed that Arsenal had the upper hand in the race for his signature, as the Catalans will be unable to pay his £12milllion fee this January.
However, despite the Gunners already submitting an enquiry, Nolito has come out to reveal on Spanish source Marca that he intends on staying at the Balaidos by penning down a new contract.
“They are only rumours. I want to be loud and clear, it is only what I have read in the press and what my friends have told me.
“I think that if Barca really want me they’ll call Celta, and as far as I know they haven’t done so.
“The truth is that I am happy in Vigo and that is why, some minor details pending, I will be renewing with Celta soon. I am only sure that I am doing well here and I have decided to renew.”
But, Arsenal boss Arsene Wenger is prepared to offer the 29-year-old a huge increase in his salary in order to lure him to the Emirates.
Nolito has made 15 appearances in all competitions this season, scoring eight goals.