Weekend reports suggested that the Gunners are chasing the Republic of Ireland international, with a £16m offer for the midfielder in the pipeline following the loss of Jack Wilshere to a nasty ankle injury.
McCarthy only joined the Toffees a little over a year ago, following Martinez from Wigan, and has been a major success at Goodison Park, with his partnership with Gareth Barry key in the club’s qualification for this term’s Europa League.
Manchester United are another side monitoring the 24-year-old, but his manager says that that there’s no way he’ll be letting him leave this winter, or next summer:
“As you know, James McCarthy is someone that we rate very, very highly,” he told Sky Sports. “Otherwise you would never make the sort of investment that we made on him just 16 months ago.
“We are delighted with James’ form. I always believe James is a typical Everton player and that he can grow and get better.
“He has got a long-term contract, he was a huge investment and, as I say, I always enjoy seeing good reports on our players.
“I see the interest, or the potential interest, or the good compliments that people pay on James from the outside but James is a player we look forward to seeing in the Everton top for a long, long time.”
Although happy on Merseyside, rumours suggest that McCarthy is set to assess his option in 2015, with Champions League football said to be an ambition he has.