Man United have been linked with a surprise £20m move for the London giants right-back Ainsley Maitland-Niles, though the club have reportedly flatly denied the talks.
Man United are in desperate need of reinforcements having made just one signing this summer, Ajax star Donny van de Beek, while Gunners need to raise funds in order to pursue their top transfer targets.
England international was expected to be sacrificed as a result, coming close to joining Wolves in a £30m deal earlier in the summer, though the Spanish manager opted to keep hold of the defender.
But since then the Gunners have struggled to find buyers for their other surplus-to-requirements footballers, with the likes of Mesut Ozil, Matteo Guendouzi and Calum Chambers yet to be sold.
With the Spanish manager desperate to land either Lyon playmaker Houssem Aouar or Atletico Madrid midfielder Thomas Partey, Mikel Arteta may have been forced into a U-turn over Ainsley.
Red Devils had made an approach for Maitland-Niles and were in advanced talks, with Man United likely to pay an initial fee of £20m plus several bonuses and add-ons.
However, the Red Devils officials are adamant there is nothing in the talks and they will not be signing the 23-year-old defender, instead of focusing their efforts on wrapping up a deal for Porto defender Alex Telles
Man United have so far been frustrated in their efforts to sign the left-back, with talks stalling over the fee, and the English defender would certainly tick a number of boxes for the Red Devils.