Arsenal made a serious move to try and sign Moises Caicedo in the January transfer window, making multiple bids and showing a willingness to pay up to £70m for the midfielder.
But Brighton refused to sell, despite the player’s clear willingness to leave.
The two parties have now come to an agreement on a new contract lasting until 2027.
The Telegraph report that this new deal won’t deter prospective summer buyers, with Manchester United, Chelsea, Liverpool, and Manchester City expected to be in the market for central midfielders.
However, the same report adds that Arsenal are not currently expected to return for Caicedo at the end of the season.
The Gunners are focusing on a deal for West Ham United’s Declan Rice, and would only revisit a move for Caicedo if their pursuit of Rice is unsuccessful.
Brighton CEO Paul Barber claimed in February that it didn’t matter how much Arsenal offered in the winter window, the answer would have been the same anyway.
“In the case of [Moises] Caicedo, it may well have been right for the club that wanted him, it may well have been right for him personally but it wasn’t right for our club and so the answer was no and he stayed,” Barber said.
“There was no amount of money during January that was going to allow us or commit us to parting company with Moises [Caicedo].
“It was a critical player, we’re sixth in the Premier League, we are going well.
“We want to try and finish as high as we possibly can because we have an opportunity for the first time in our history to do even better than we have done previously, which was finishing ninth in the Premier League.”
At the time, reports suggested Arsenal could still reignite their interest in Caicedo in the summer, but that no longer seems likely.