Arsenal's hopes of swooping to sign Malaga midfielder Santi Cazorla for a knockdown price may yet be dashed by the La Liga club.

With Cazorla one of several players unhappy by the club's failure to pay their wages, the Gunners had been looking to sign the Spanish international for what would constitute a bargain £16 million fee.

However, Malaga coach Manuel Pellegrini has claimed that he doesn't believe that the club will let their most influential player leave on the cheap.

"They say that there is an offer for Santi Cazorla; selling Cazorla for €20 million would be giving him away," the Chilean said, according to the Guardian. "I don't think the club is in a position nor has the intention to do so.

"It would undermine the intention to compete in the Champions League. If important offers arrive for players you always listen to them, but I don't think that Santi is going to leave the club for 20m because that would be giving him away and it would send the wrong message out."

Despite having invested big since taking over to help lead Malaga into the qualifiers for the Champions League, the money from the club's Qatari owners has mysteriously dried up in recent months. Sid Lowe reports that a representative from the owners has traveled to Malaga to try and solve the financial issues.

The quotes from Pellegrini are in contrast to a report in the Daily Mirror, which claim that a deal remains close. The tabloid also alleges that the Gunners remain interested in French duo Yann M'Vila and M'Baye Niang.

A deal for M'Vila had been much mooted for much of the early part of the summer, with Arsenal reported to have been close to a £17 million move. But, despite Rennes claiming that they would listen to offers for the defensive midfielder this summer, there have been no further developments. It is believed that M'Vila's various disciplinary problems, both on and off the pitch, had persuaded Arsene Wenger to turn his attentions elsewhere.

Niang, 17, has spent time on trial with Arsenal this month from Ligue 2 side Caen. However, interest from Manchester City is believed to be preventing the Gunners from completing a deal for the highly-rated forward.

The two sides' respective interest in Niang, as well as the future of Robin van Persie, may have been discussed following Manchester City's 2-0 defeat of Arsenal in a pre-season friendly in Beijing on Friday.

Arsenal may have to forget about signing Brazilian Paulo Henrique Ganso this summer. The Gunners have been linked with a move for the attacking midfielder, who was known to be unsettled at current club Santos. The 22-year-old has poured cold water on those reports by stating that he is happy to remain with the Copa Libertadores finalists.

"My future is at Santos," Ganso claimed, according to Metro. "I have a contract until 2015, and right now I am focused on winning the gold at the Olympic Games for the Selecao."

While the British press had heavily linked the playmaker to a move to the Premier League, given his struggles on the pitch in the past year, a move within Brazil always appeared more likely.