Arsenal has missed out on the signature of Metinho, who is destined for Manchester City, according to reports.
The Gunners had been one of the teams who wanted to sign the young Brazilian who has been likened to Manchester United midfielder, Paul Pogba.
After enjoying success with the signing of Gabriel Martinelli, the Gunners are prepared to make more moves in Brazil.
Metinho has been developing his game at Fluminense, where he has been attracting the attention of top European teams.
Although he would not easily break into the first team at Arsenal or City, Globo Esporte says the Premier League champions-elect has won the race for his signature.
The Citizens will pay £11 million for his signature and send him to French side Troyes on loan, where he would get regular game time in the French Ligue 2.
They recently added Troyes to their portfolio of teams and they expect Metinho to develop well there.
Arsenal will have to turn their attention to their other summer targets now and they will be hoping to unearth another top Brazilian talent.
For now, their focus is on achieving a good end to this campaign as they compete in the semi-final of the Europa League against Villarreal next week.