Yacine Adli will turn down a move to Arsenal and sign a three-year professional deal with Paris Saint-Germain, according to Paris United, as cited by Get French Football News.
The report from France claims that sporting director Antero Henrique convinced the player to stay in Paris, despite previous claims suggesting that a move to Arsenal was all-but complete.
Reports have suggested that Unai Emery was going to make the player one of his first signings at the club by swooping in with a professional contract offer, however, that no longer appears to be the case.
The player was expected to sign a three-year contract at the Emirates, which would include the option for another year.
The news will come as a blow to Arsenal, with Adli one of the highest rated young players coming through at Paris Saint-Germain.
While Adli was not expected to feature extensively in the first-team picture during the new season, the Gunners have missed out on a bright prospect for the future.