Nacho Monreal has ruled out a return to Spain and is ready to extend his stay at Arsenal.
Athletic Bilbao had been keen to sign the defender and were confident of securing an agreement.
But Monreal, 31, made it clear he has no intention of leaving the Emirates, despite the signing of rival left-back Sead Kolasinac from Schalke.
Monreal, who cost £8.7million from Malaga in 2013, said: “I am very happy at Arsenal and I feel appreciated because Arsene Wenger has shown confidence in me.
“I have two more years left on my contract, with an optional third, and the idea is to stay here.
“I played in as many games as anyone at the club last season and I have been made to feel an important squad member.
“We made up for the disappointing league season by winning the FA Cup and we all leave for the summer feeling good.”
The arrival of Bosnian international Kolasinac as a free agent is likely to mean the end of Kieran Gibbs’ Arsenal career.
The 27-year-old has one year left on his deal but knows he will not feature in boss Wenger’s starting line-up next season.
Newcastle are interested but not at Arsenal’s current £15m asking price.