Melo appeared to end speculation strongly linking him to the Gunners by signing a one-year extension to his contract on Tuesday, tying the 25-year-old to La Viola until 2013 and including a release clause of 25 million euros.

Reports in Italy suggested the Brazil international had agreed a deal with Juve, with the two clubs set to meet on Tuesday - something Fiorentina have moved swiftly to deny.

A statement on the club's website, it.violachannel.tv, read: "Fiorentina sporting director Pantaleo Corvino, in denying the transfer rumours of the past few hours, which sees Felipe Melo definitely at other clubs and reporting potential meetings to finalise the transfer of the player, underlines the following:

"In case the footballer has already reached an agreement with any club, the release clause fixed with the player himself is 25 million euros. We would not contemplate any exchange, unless it is to the liking of Fiorentina.

"Arsenal is the only club to have come close to the sum established by the release clause. Fiorentina in turn proposed to the aforementioned club a reduction in the amount set by the release clause by including right-back (Emmanuel) Eboue in the deal."

PA Sport