Arsenal are in talks with Barcelona to offload Pierre-Emerick Aubameyang on loan until the end of the season.
Aubameyang was stripped of the Arsenal captaincy last month and the Gunners were hoping to secure a deal to make considerable savings on his wages.
The main issue left to resolve on deadline day was the payment of his £350,000-a-week salary and who covers what proportion of that.
Any deal with Barcelona was not expected to include an option or obligation to buy Aubameyang, who has 18 months remaining on his Arsenal contract.
Clubs in Saudi Arabia had also shown an interest Aubameyang this month, but the 32-year-old is eager to keep playing at the highest level.
His departure would leave Arsenal short on attackers but, as of Monday morning, they looked set to be frustrated in their attempts to sign a striker.
Arsenal had shown an interest in Dusan Vlahovic before he joined Juventus from Fiorentina and they have been unable to secure other targets including Dominic Calvert-Lewin.
Alvaro Morata, currently on loan Juventus from Atletico Madrid, emerged as a late option this morning according to reports in Spain.
Meanwhile, Arsenal were also today working on loan deals for a number of young players, including Jordi Osei-Tutu, Nikolaj Moller, Omar Rekik and Tim Akinola.
The quartet are looking to gain first-team experience during the second half of the season and Arsenal were hoping to find them moves.
