There are reports Milan are set to sign Denilson from Arsenal, which would mean him scrapping a loan to Sao Paolo.
The defensive midfielder was a youth team player at Sao Paolo and returned there on loan last season, a deal which was recently renewed.
However, Sky Sports claim Arsenal have a clause in his contract allowing them to cancel the loan if a suitable offer arrives to sell Denilson permanently.
The 24-year-old joined the Gunners in 2006, scoring seven goals in 96 appearances.
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