According to BBC Sport, Aaron Ramsey verbally agreed terms on a four-year deal with Arsenal before the club withdrew the offer.
The Gunners’ longest-serving player is expected to leave Emirates Stadium at the end of the season when his existing contract expires.
Talks between Aaron Ramsey and Arsenal have been ongoing for many weeks, but it looked as though they would reach a definite conclusion as the Welshman favoured staying in North London over joining a new side.
The same source says that the 27-year-old midfielder even shook hands on the latest offer tabled to him, but the Gunners pulled the plug without explaining anything.
As things stand Aaron Ramsey, who joined the Premier League giants from Cardiff City in a £4.8 million deal a decade ago, will have the option of signing a pre-contract agreement with a foreign club from January 1.
Juventus, Lazio and Barcelona are among the foreign clubs coveting the midfielder’s signature, while Manchester United and Chelsea are among the English clubs to have been linked.
And it remains to be seen if the local rivals will press with a move for the Wales international as both sides are well-stocked in midfield.