The 24-year-old spent last season in his homeland on-loan at the Morumbi but it looked as if he would be returning to North London in the summer for the start of the 2012/13 Premier League campaign.
The Brazilian club recently admitted they couldn’t afford to buy Denilson outright but are hopeful that Gunners boss Arsene Wenger will allow permit another temporary stay with talks set to take place in the future.
“Maybe we will manage to extend the loan for six more months or even another year.”Vice-president Joao Paulo de Jesus Lopes told Globo Esporte: “Arsenal’s staff want him to return but we are waiting for [director of football] Adalberto Baptista to have talks with them.
Asked about Arsenal’s view on Denilson, De Jesus Lopes added: “They liked his performances, they liked Denilson’s development. That’s why they want him to return.”
Wenger has been prompted into clearing the Emirates Stadium decks after spending £23 million to bring in strikers Lukas Podolski and Oliver Giroud with two more big name signings in his sights.
He also wants to trim the wage bill in order to reward certain players with improved contracts for helping the club achieve automatic qualification to the Champions League.
The Frenchman is actively seeking new clubs for Nicklas Bendtner, Carlos Vela and Sebastien Squillaci after they were deemed surplus to requirements.
Vela’s name has been passed around a number of Spanish sides whilst Squillaci could be on his way to Bastia after lowering his wage demands.
Lukasz Fabianski, Vito Mannone, Johan Djourou, Denilson, Andrey Arshavin, Park Chu-Young and Marouane Chamakh are also up for sale along with fringe players Henri Lansbury, Craig Eastmond, James Shea and Sanchez Watt.