Arsene Wenger is a big fan of Schneiderlin's and was believe to be considering a £25million bid in the summer transfer window. The Gunners were also interested in signing him last summer, but having already sold a number of players, Southampton refused to sell the France international at any price.
However, Coquelin's meteoric rise has forced Wenger to reconsider his summer transfer plans. An anchor-man in midfield was a priority, but the 23-year-old's reputation has grown with every game.
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Coquelin is now seen as a long-term solution to Arsenal's problems. They have been looking for a forceful midfielder since the days of Patrick Vieira and Gilberto Silva. Now, Wenger is starting to believe he has found the perfect solution within his current squad.
The Arsenal star seemed to have no future at the club in December after being loaned out to Charlton Athletic with just six months remaining on his contract, but an injury crisis forced Wenger to recall him and a spirited performance against Manchester City seemed to set a blueprint for the new Arsenal team.
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Upturn in form
With Coquelin in the side, Arsenal have arguably been the best team in England. They have won eight consecutive Premier League games and will contest their second FA Cup final in two seasons against Aston Villa. Coquelin has played a key part.
But signing Schneiderlin would mean pushing Coquelin out of the team. Either that, or Wenger would have to convince the Saints midfielder to join as back-up to his compatriot.
Wenger also has his eyes set on the likes of Chelsea's Petr Cech and it appears the Gunners boss has now decided to switch his focus. It could end up being a mistake.
Coquelin is thriving in the first-team now, but what happens when his form drops and there is no one to take his place? Mathieu Flamini has not convinced and could leave in the summer while Mikel Arteta will always be more of a passer than a tackler.
Competition is key to keeping players on their toes and Arsenal will need Coquelin to be at his very best if they are to challenge for the Premier League title next season.
Do you think Arsenal are right to consider dropping their interest in Morgan Schneiderlin?
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