The 28-year-old midfielder has signed a new contract that commits his future to the Ligue 1 outfit until the summer of 2017, when he will be 32.
Gunners boss Arsene Wenger is a long-term admirer of the France international, and was believed to be keen to lure him from Stade Velodrome to the Emirates Stadium last summer.
Valbuena has also attracted interest from Atletico Madrid and Fenerbahce in the past, with the Turkish champions coming closest to securing his signature.
Any hopes Arsenal might have had of making a renewed bid for attacking midfielder's services have now been dashed, however, after Valbuena put an end to all the transfer speculation, by signing a long-term extension.
"I am delighted to sign a contract with Marseille," he is quoted by Sky Sports. "Fernerbahce wanted me but they could not agree with Marseille.
"I will play for this great club any time they need me."
Valbuena helped Marseille to a French League and Cup double in 2010, before bursting onto the international scene with Les Bleus on the eve of the World Cup in South Africa, when he scored the winning goal on his debut against Costa Rica.
The diminutive figure came up through the youth ranks at Bordeaux before moving to third division Libourne and finally Marseille in 2006, where he has now made almost 200 appearances in Ligue 1.