Sky Sports News has been told Vinicius Junior will be staying at Real Madrid beyond this summer.
The Spanish club do not want to sell him and are confident he will sign a new deal.
His current deal has a year to run but Arsenal are interested and are watching his situation closely.
Sky Sports News broke the news on Monday that further talks over his future between Real and his representatives will take place this week. That is with a view to making progress on a new long-term contract at the Bernabeu.
New manager Jose Mourinho is understood to rate Vinicius highly and wants him to remain one of his top Galacticos.
Were Vinicius rumors only a contract row?
Analysis by Sky Sports News’ Lyall Thomas:
The situation surrounding Vinicius Junior has some of the classic ingredients of a new contract dispute; reports of an impasse over salary demands, new interest from Arsenal and further talks on the horizon.
But as yet there is no strong public evidence that Vinicius wants to leave Real Madrid for any reason, sporting or otherwise, no quotes, no interviews, no suggestive social media posts.
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