DAILY POST had reported that Mari arrived London on Saturday for his medical with the Gunners technical director, Edu Gaspar, after a deal to sign him on loan with a view to a £7.5m transfer was agreed.
The 26-year-old had his medical over the weekend, but a late hitch has seen the transfer stall.
Negotiations are ongoing between the two clubs, but Arsenal are also considering new targets.
Speaking after Arsenal’s 2-1 win over Bournemouth in the FA Cup fourth round encounter on Monday night, Arteta said the Gunners will sign Mari if it is possible.
Asked about Arsenal’s plans to sign Mari after Mustafi’s injury, Arteta was quoted by Arsenal’s official website as saying: “No. We had a very clear intention of what we wanted to do in the market with the resources we have and if we can do it, fine.
“But his fitness [Mustafi’s fitness] won’t change anything.”