The Spanish international fell out of favour at the Bernabeu last season under Jose Mourinho, but was expected to regain his place following the Portuguese's departure.
However that hasn't been the case, with Diego Lopez continuing between the posts under new manager Carlo Ancelotti.
While a deal failed to materialise, it had been reported that the Gunners were contemplating a January swoop for the 32-year-old, who was due to get some much-needed game time in the Champions League only to pick up an injury in training.
However Goal says the shotstopper won't be going anywhere in the winter window despite the possibility of not having regular football in the season leading up to the World Cup in Brazil, and will only contemplate a summer move.
The website reports that Casillas' decision to remain in Spain beyond January is not only down to his desire to fight for a spot at his boyhood club, but also because his partner, journalist Sara Carbonero, is pregnant and is expected to give birth at around the turn of the year.
Whether Arsenal would be willing to make a move for Casillas next summer remains unclear; boss Arsene Wenger has put his faith in Wojciech Szczesny by not signing a direct replacement in the summer transfer window.
Instead he signed back-up Emiliano Viviano from Palermo, which has cast doubts over Lukasz Fabianski's future.