Matteo Guendouzi will return to Arsenal this summer with Hertha Berlin deciding against a permanent deal.
The 21-year-old joined the German side on loan last summer and he has since made 19 appearances in the Bundesliga.
Hertha have the option to sign him permanently, but Bild claims that the hierarchy have decided against triggering the clause.
It is added that the club have become tired with Guendouzi’s moody and stubborn personality and have no desire to keep him.
The Frenchman will enter the final year of his Gunners contract this summer and he is likely to be shown the exit door.
He is out-of-favour under manager Mikel Arteta and reports claim that they are confident of selling him for £25m.
Villarreal, managed by former Gunners boss Unai Emery, were interested in signing Guendouzi with a loan-to-buy option last summer.
The Yellow Submarines could revive their interest in the next transfer window with Emery a huge admirer of the midfielder.