Unai Emery will not sanction a permanent deal for Barcelona midfielder, Denis Suarez, the UK Sun reports.
Instead, Emery is targeting alternative transfers for the summer.
Suarez, 25, joined the Gunners on loan during the January transfer window, but has only made six appearances as a substitute.
Arsenal have the option to buy Suarez for £18 million when his loan deal finishes at the end of the season.
However, Emery feels Suarez has been unable to cope with the physicality of the Premier League and is already looking at other options in the transfer market.
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