Arsenal had been linked with a move for the 25-year-old but the new deal makes any transfer unlikely. The Portuguese international also now has a sizeable buyout clause of €60million to ward off any potential bids. He was mentioned as a possible transfer target for Arsenal by A Bola at the start of this week, with the Gunners looking to strengthen the centre of their midfield.
The absence of Mohamed Elneny, who is currently away at the African Cup of Nations, and the injury to Santi Cazorla, means manager Arsene Wenger has limited options in central midfield.
Granit Xhaka’s sending off against Burnley has given the Gunners boss an extra headache, but it now seems very unlikely that Danilo will be heading to the Emirates any time soon.