"There were some rumours that my name was involved in this possible comeback," he told Arsenal's official website.
"I had people asking me on Twitter and even players from Fenerbahce asking if it was true, but I'm very happy here at Arsenal and I hope to stay here at Arsenal for a long time.
"I have a contract and I'm very happy here, not only at Arsenal but in London too, it is a great city. The Arsenal fans are amazing, this is a great club, and I hope to stay here for a good while."
Santos's current contract with Arsenal lasts until June 2015.