Dutchman will not be moving to Emirates Stadium in January, says German paper.
Klaas-Jan Huntelaar is set to snub interest from Arsenal and sign a contract extension with Schalke, according to German news agency Der Westen.
“Huntelaar has decided to renew Schalke contract, details to be announced in the coming days,” the paper tweeted.
Reports on Wednesday had suggested that Arsenal had open talks with the 29-year-old over a £100,000 per week move to Emirates.
But the Netherlands international has reportedly extended his deal with the Bundesliga giants until 2016, despite the sacking of boss Hubb Stevens this week.
The news will come as a blow to Gunners boss Arsene Wenger, who had reportedly made Huntelaar a £6m target for January.
Huntelaar has scored an impressive 42 goals in 72 Bundesliga appearances for the Veltins Arena club since joining from AC Milan in 2010.
Arsenal retain an interest in Huntelaar’s Schalke teammate Lewis Holtby, however.
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