Andre Santos finds himself back at Arsenal after being priced out of a move to Gremio.
Arsenal flop Santos was packed off on loan to the Brazilian club in January after the capture of Nacho Monreal.
Arsene Wenger wants to offload the error-prone defender as part of his summer shake-up and is prepared to take a financial hit on a player bought for £6million in August 2011.
But Gremio claim the 30-year-old will return to the Emirates as he is too costly to seal a permanent move to his homeland.
Gremio’s director of football Marcos Chitolina said: “It would prove to expensive to renew Andre’s contract. He is a very expensive player.
“We thank him for everything he has done.”
Santos, who still has two years left on his contract, is among the list of Arsenal’s unwanted players.