Los Blancos yet to receive an offer from the Emirates Stadium.
Real Madrid president Florentino Perez has insisted Arsenal have not bid for striker Gonzalo Higuain.
The Argentine is reportedly a top target of Gunners boss Arsene Wenger this summer and the north London outfit were thought to be closing in on a £25m deal to sign the 25-year-old.
Higuain has made no secret of his desire to leave the Santiago Bernabeu this summer and, with Juventus unable to afford the Argentina international, Arsenal appeared to be closing in a a club-record deal.
But Perez has poured cold water on the speculation, insisting Los Merengues are yet to receive a bid for Higuain.
“He will not leave,” Perez said when asked about the former River Plate forward by Spanish newspaper AS.
“Besides, Arsenal have not come to us with any offer. Not €27m or anything. There is no offer.”
Only Cristiano Ronaldo and Lionel Messi have scored more goals in La Liga than Higuain since the French-born Argentine move to Spain in 2005.
Despite not being a first team regular under Los Blancos head-coach Jose Mourinho last season, Higuain still netted 16 league goals in just 19 starts.