Watford have pulled out of a deal to sign Arsenal left-back Kieran Gibbs, reports Sky Sports.
The Gunners are keen to offload the 27-year-old before the close of the transfer window, with manager Arsene Wenger looking to free up funds to invest elsewhere.
Gibbs is yet to make a Premier League appearance for the north London side this season and has been told he is free to leave the club.
With a little under 12 months left to run on his current deal, Arsenal are hoping to cash in on the player rather than lose him on a free next summer.
However, while Watford agreed a fee with Arsenal for Gibbs, the Hornets were unable to agree personal terms with the player, who is keen to ply his trade under Marco Silva.
It remains to be seen whether Watford will return for Gibbs before Thursday’s deadline, while West Brom and Newcastle have also been credited with an interest in the England international.