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Premier League side Arsenal have been dealt a huge blow in their pursuit for Brazilian forward Luan, who has signed a contract extension with Brazilian club Gremio which lasts until 2020, according to a report on the Mirror.
The Gunners were lining up a £26m move to lure Luan to the Premier League but the forward has decided to stay in his home country for the next couple of years.
The 24-year-old has been in top form for Gremio this season, managing to find the back of the net 16 times and helping his side to the final of the Copa Libertadores with a brace.
Spartak Moscow made an official bid of £30m in the summer for Luan, which was swiftly rejected by Gremio who were not looking to sell the forward.
Arsenal were competing with fellow Premier League side Liverpool for the signature of Luan but both clubs must now pursue other targets.
The forward has one international cap but may force himself into the national squad in time for the 2018 World Cup in Russia.
Should the forward make the squad, then a few good performances at the tournament would increase his value massively, which could persuade Gremio to cash in on the forward.
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