The 25-year-old midfielder has been heavily linked with a move away from Germany this month, as he enters the final six months of his current deal.
Gunners boss Arsene Wenger is a long-term admirer of the Swiss born Bosnian-Serb, and was rumoured to be interested in bringing him to the Emirates Stadium.
However, any hopes Arsenal may have had of securing Kuzmanovic's signature have been dealt a blow, after he hinted that he would like to return to Italy, where he previously plied his trade with Fiorentina.
"My relationship with Stuttgart is very good, but I am out of contract at the end of the season," he told Tuttomercatoweb. "And, we have not discussed the possibility of a new deal.
"In regards to the future, I have a clear idea. I want to come and play in Italy once again because I know the language and I like the type of football they play."
Kuzmanovic enjoyed two-and-a-half years at the Stadio Artemio Franchi, before he made the £7million switch to the Bundesliga in 2009.
In the past three seasons, he's made 95 appearances for Stuttgart, scoring 17 goals, but feels it's now time to move on.
Do YOU want to write for GiveMeSport? Get started today by signing-up and submitting an article HERE: http://gms.to/writeforgms