Reportminds Blog understands that the 24-year-old Brazilian was speculated to join Mikel Arteta side before the transfer window closed.
The Gunners have already been hit with injuries to Thomas Partey and Mohamed Elneny in the midfield. While Oleksandr Zinchenko missed their 2-1 win over Aston Villa due to injury concern.
Steven Gerard valued the midfielder who has a year left on his current deal for £40m.
Arsenal's initial bid of 20m pounds was rejected before another 23m pounds was tabled for Douglas Luiz.
If you recall that the Brazilian came off the bench to score from a corner kick at the Emirates stadium during their trip to Arsenal.
Mikel Arteta offered their final bid of 25m pounds in the last hour of the transfer deadline day, which was turned down by Villa.
It appears that Steven Gerrard side are prepared to allow the box to box midfielder leave the Villa park on a free transfer next season.
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