Arsenal were offered the chance to sign midfielder Arthur Melo this summer.
The Juventus loanee is now at Liverpool for the rest of the season, with the Anfield club also having a buy option within the agreement.
The Reds chose to secure Melo after injuries to the likes of Naby Keita and Alex Oxlade-Chamberlain.
However, Arsenal did not pursue Melo, despite having a midfield injury crisis of their own.
According to The Athletic, they rejected the chance to secure the 26-year-old, as they had other targets.
Arsenal made several unsuccessful bids for Douglas Luiz of Aston Villa, while they turned down Youri Tielemans of Leicester City.
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