According to Diario de Noticias, Vitor Pereira has been offered a managerial job at Arsenal moments after he turned down the Everton job to stay with Chinese Super League (CSL) side Shanghai SIPG.
Arsenal are on the search for a permanent successor to Unai Emery at the club after the Spanish tactician was sacked at the end of last month.
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Unai Emery paid the ultimate price for a run of seven games without a win in charge of Arsenal as he was as sacked shortly after the disappointing 2-1 loss at home to German Bundesliga side Eintracht Frankfurt in the Europa League.
He spent just 18 months in North London on the back of his appointment as the Arsenal manager in the summer of 2018.
Freddie Ljungberg was one of his assistants and the former club winger was instantly made the interim manager following the sacking of Unai Emery.
The Arsenal legend was part of the squad that went unbeaten during the 2003/04 season.
He has one, drawn one and lost one of his three league games in charge of Arsenal.