Sead Kolasinac is set to return to Arsenal after his loan spell at Schalke 04 because the Germans cannot afford his wages.
He joined his boyhood club in the January transfer window as they struggled with relegation.
They eventually lost the battle and will be in the German second division next season.
He is ideally the type of player that they need if they are serious about bouncing straight back to the Bundesliga.
But Sky Sport Germany journalist Dirk Schlarmann tweeted that he would not stay with them because the club’s financial troubles will stop them from keeping the full-back and Klaas-Jan Huntelaar
The club also posted on their website that it is sad that they cannot keep the Arsenal loanee, but they are restructuring their squad and have to be realistic with themselves about what they can afford and what they can’t.
“This decision hurts us both in sport and human terms,” said director of sport Peter Knäbel.
“In view of the current budget and squad structure – all the known and publicly discussed challenges – there was no alternative. We have to be so honest.
“In view of the short preparation and the early start of the season, we cannot afford a week-long hang-up game either, but have to make decisions for Schalke 04 now. That’s why we decided on this clear cut. “
The full-back isn’t one of Mikel Arteta’s favourites and this news means that Arsenal will likely look for a new club for him.