Agent Jorge Mendes reportedly brokered talks between Arsenal and Wolverhampton Wanderers boss Nuno Espirito Santo over replacing Mikel Arteta at the Emirates Stadium.
Arteta's future was called into question in the run up to Christmas with Arsenal down in 15th in the Premier League, four points above the relegation zone.
However, the Gunners have since won three in a row in the league, as well as overcoming Newcastle United in round three of the FA Cup last time out.
According to The Sun, though, Arteta was nearly out of a job as the club were in discussions with Mendes regarding the availability of Nuno.
With Arsenal no longer interested, it is claimed that Mendes is now actively seeking another team for his client, despite the Portuguese only signing a three-year extension in September.
Nuno has been in charge of Wanderers since 2017, but his side have endured a disappointing start to 2020-21 and find themselves 14th, a point below Arsenal having played a game more.