Arsenal are unlikely to sign Pedro Neto before the transfer window closes this month.
The Gunners were chasing after the Wolves attacker to round off their summer spending spree.
However, O Jogo states that Wolves have made a decision on the young Portuguese winger's future.
The club's hierarchy have decided that he will stay with Bruno Lage's first team squad for this season.
The club do not believe they can secure a quality replacement with so little time remaining in the window.
Meanwhile, Arsenal are still set to push club-record £72 million signing Nicholas Pepe out of the club in the coming days.
He is set for a return to France on loan, with rumours of a move to Nice.
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