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According to Fabrizio Romano Arsenal are determined not to send Takehiro Tomiyasu on loan until the end of the season.
Tomiyasu has attracted interest from Italian clubs such as AC Milan Napoli and AS Roma this month.
However Romano understands that Arsenal have rejected the offer and are in talks with Tomiyasu over a new contract.
The defender will see his current contract expire next summer but Arsenal have no intention of letting him go.
Although the structure of his new contract is being discussed there are reports of optimism among both parties to be reached soon.
Tomiyasu has made 20 appearances for Arsenal in all competitions this season scoring once in the Premier League.
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