Lyon goalkeeper Hugo Lloris will stay with the French side for another year to assist his quest to play for France at Euro 2012.
The France international had been linked with a number of club across Europe, including Bayern Munich.
But the 24-year-old to set to stay another year with the Ligue 1side, despite attention from the Bundesliga club, and Arsenal and Manchester United.
Lloris is reportedly worried what a move abroad may do to his chances of appearing for France in next year's European Championships.
However, Lloris' future after the competition is still uncertain, and rumours swelled of his departure after Lyon's draw with Nice, after which Lloris criticised his team-mates.
The announcement is a blow to Arsenal hopes of signing the keeper, who would have severely improve their goalkeeping situation, which has undermined their Barclays Premier League challenge this season.
United are in a similarly precarious position with stalwart Edwin van Der Sar due to retire at the end of the season.
The likes of Pepe Reina, Maarten Stekelenburg and Manuel Neuer have all been linked with moves to The Emirates Stadium and Old Trafford.
Both clubs are currently vying for the league title, with United seven points clear of Arsenal, with seven games remaining.
But the Gunners will have their mind set on their game in hand, which comes next weekend against Liverpool, and the duo's meeting at the Emirates on May 1st.