Arsenal reportedly pulled out of a late deal to sign winger Malcom from Barcelona due to the size of the requested loan fee.

The Gunners concluded a £2m loan deal with Barca for the services of winger Denis Suarez earlier today and had also been discussing a similar arrangement for his teammate Malcom, who has struggled for game time since moving to Camp Nou last summer.

According to The Sun, however, Arsenal were left "astonished" by Barcelona's demands for a significant payment in exchange for releasing the player on loan until the summer.

Tottenham Hotspur had also been in the running for the Brazilian but are they too are thought to have dropped out of the running due to the size of the fee.

Arsenal have been restricted to pursuing only loan deals this month due to a lack of available funds, and with just hours of the window remaining they have only managed to conclude a single deal for Suarez.