The 25-year-old Brazilian is keen to stay in his native country and Sao Paulo are more than happy to keep him on a permanent basis when his loan comes to an end later this summer.
The Brazilian club are yet to make a formal approach to Arsenal as they want to wait until the end of their season to get the cheapest deal possible.
Denilson was a bit-part player at the Emirates before his loan move back home in 2011 and his future clearly doesn’t lie in North London.
The defensive midfielder will want to get the deal done and dusted before the start of Arsenal’s pre-season in order to avoid returning to London.
“There are still more than 60 days left on his contract, so there are a couple of points to take into consideration,” Vice president Joao Paulo de Jesus Lopes told ESPN Brasil
“The first point is that we are interested in the player and the second point is that we must deal with this situation closer to the end of the deal.
“If we do it too early, it will end up costing us more money.”
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