The Russian international has become disillusioned with life at the Emirates Stadium after being frozen out by Arsene Wenger, and a lack of tempting options for the future has led Arshavin to consider calling it a day.
The report claims Arsenal have had no enquires for Arshavin despite the Gunners giving him permission to speak to other clubs since the January transfer window.
He's been available for transfer for the past four transfer windows, but his wages are believed to have put potential suitors off. He's thought to be on close to £95,000-a-week at Arsenal.
A meeting with Arsene Wenger before the start of the 2011-12 season led the Arshavin resolving to stay and fight for his first-team place, but opportunities have been scarce.
His move to Zenit on loan was only temporary - the Russian club relectuant to commit to a long-term deal - and since his return to Arsenal he's barely got a look in, starting just two matches, both in the Capital One Cup.
Reading made an offer in January, and Arshavin was reportedly available for as little as £1m, but sources claim he was unwilling to move to a club fighting for Premier League survival.
The report claims Arshavin is open to continuing past the end of this season if a suitable club comes in for him, but at the moment interest "couldn't be colder". He's thought to favour another team in the Premier League, preferably in London.
But if nothing materialises, the Russian international is seriously considering retiring at the end of the season.
He is in the final two months of his Arsenal contract, signed in the winter of 2009 after his £15m switch from Zenit, and the Gunners reportedly will not offer him an extension.