Carl Jenkinson snubbed a move to Crystal Palace due to low wages
The deal for the defender was thought to be close but Sam Allardyce revealed negotiations with the player's agent were stalling the move.
And according to Sky Sports sources, the reason for the collapse in the transfer was because Jenkinson was unhappy with his wage.
Jenkinson reportedly found out that Palace were paying Schlupp £56,000 a week and he pulled the plug on his move.
The defender was being offered a £35,000-a-week contract which he deemed unfair by comparison.
The 24-year-old has instead opted to remain with the Gunners and Arsene Wenger suggested this week he was unlikely to leave before deadline day.
"We are still open [to Jenkinson leaving] because we have many players in that position," Wenger said.
"But at the moment it doesn’t look like it will happen."
Jenkinson is under contract with at the Emirates until June 2018.