Arsenal have reportedly ended their interest in signing Barcelona midfielder Denis Suárez after talks between the two clubs broke down over an obligation-to-buy clause in his proposed loan move.

It's understood that the Gunners have their hands tied and can only make loan signings during the January transfer window due to financial constraints, but manager Unai Emery was confident a deal for Suárez would get over the line this month.

Denis Suarez

The Daily Mail now reports that a move for Suárez is dead in the water after talks broke down over what would happen at the end of his loan spell in north London.

Barcelona supposedly wanted Arsenal to commit to an obligation to buy at the end of the season, but the Gunners wanted to see how Suárez performed throughout the rest of the campaign before committing to a fee of up to £35m.

Suárez worked with Arsenal manager Emery at Sevilla and certainly appeared to make an impression on the Spanish head coach. The 25-year-old made 46 appearances at the Ramon Sanchez-Pizjuan, scoring six goals and claiming five assists.

It had been hoped that Suárez would come in to learn the ropes this season before filling Aaron Ramsey's shoe's next year, while it had also been suggested that the Welshman could leave for Juventus this month as a result of the deal with Barcelona.

West Ham United v Arsenal FC - Premier League

But it now appears that Arsenal are back to square one in the search for reinforcements after talks with Barcelona fell through, and time is running out for the club to snap up any new arrivals in January.