Arsenal were strongly interested in a transfer for Barcelona winger Malcom before the end of the January transfer window but the Gunners were unable to pull off a deal for the Brazilian player.
The Sun revealed that the Gunners discussed a possible loan deal for Malcom while negotiations for Denis Suarez were ongoing.
Spanish midfielder Denis Suarez was able to secure a loan move to Arsenal after signing a one-year contract extension with the Spanish La Liga giants.
The 25-year-old has signed a short-term loan deal with the Gunners until the summer with the option to buy at the end of his loan spell and the Spaniard has been handed the number 22 jersey at Arsenal.
Senior Arsenal officials were unable to press on with their loan inquiry on Malcom after they received a huge loan fee valuation from Barcelona.
North London rivals Tottenham Hotspur were also keen on a loan transfer for Malcom whom Barcelona have slapped a £50m asking price on.
Brazilian attacker Malcom has been on the fringes of the Barcelona team this season after failing to seize the little opportunities that he has been given by manager Ernesto Valverde this season.
The 21-year-old has started just one League game for Barcelona this season.
In total, Malcom has played 118 minutes of league football in this campaign.