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Wellington Silva was expected to join the French side after the Gunners triggered his buy-back clause.
Arsene Wenger inserted a repurchase option worth £3m in the deal that took him to Brazil and was due to flog him for £4.4m.
The plan was to re-sign him from Brazilian side Fluminense for €4m before selling him straight to Ligue Un side Bordeaux for a small profit.
But Brazilian website Globo Esporte now claim that Silva has failed his medical at Bordeaux, and will return to north London.
The player’s agent, Alexandre Soares, said: “During the medical examinations a small inflammation was detected in the groin. It’s not serious and the footballer is able to play, but the French club has chosen not to continue with the contract.”
Pedro Abad, Fluminense president said recently: “When we brought him in last year, there was a clause that allowed Arsenal to buy him back for a fixed amount.
”Another club (Bordeaux, France) made a proposal that beats that value and Arsenal already said they will exercise this clause. So he should leave.”