Brazilian midfielder Denilson's future should be finally be sorted this week after a series of negotiations between Arsenal and Sao Paulo.
Denilson has spent the past 12 months on loan in his native Brazil after being deemed surplus to requirements in North London.
Arsenal are understood to want the player to return or be sold permanently, while Sao Paulo want to keep him on loan for at least another six months.
Sao Paulo vice-president Joao Paulo de Jesus Lopes told Globo Esporte: "Arsenal's staff want him to return but we are waiting for [director of football] Adalberto Baptista to have talks with them. Maybe we will manage to extend the loan for six more months or even another year."
Denilson is also understood to be keen on a prolonged stay in his homeland after seeing a marked improvement in his recent performances.
