Denis Suarez will have to sign a new contract at Barcelona before a loan move to Arsenal can be completed.
The Spanish midfielder has struggled for playing time this season under Ernesto Valverde and was axed from the squad to face Sevilla in the Copa del Rey on Wednesday.
Links of a January exit have been rife in Spanish media, citing reports that Premier League side Arsenal have been keen to agree a loan deal.
An agreement over the deal has been reached with Barca settling for a fee of £1.5m for the remainder of the season.
However, despite the agreement – problems at the Camp Nou are stopping the move.
Barcelona officials want Suarez to agree a new contract before he leaves for the Emirates stadium, however, wage demands from the former Sevilla man are halting the negotiations.
At the moment, it looks very likely that Suarez will remain with the Catalan club until the end of the season, unless an agreement can be found over the next eight days before the January transfer window closes.
Despite his lack of minutes, Arsenal boss Unai Emery sees Suarez as a good option to have for the second half of the season, whilst a permanent move could be an option following Aaron Ramsey’s deal to Juventus.