The 25-year-old has been heavily linked with a move away from the La Liga outfit in recent months and it had been thought that the Gunners were closing in on a £27m deal for the Argentina international.
However, Higuaín is now more likely to remain with his current employers, his representative Enzo Bronzetti has revealed, while also ruling out a move to Napoli.
“[New Real Madrid boss] Carlo Ancelotti will do everything possible to convince Higuaín to stay put,” Bronzetti told Radio ORC.
“Could he join Napoli? I think that’s out of the question too – I don’t think that they will be able to sign him.”
Higuaín, who has also been linked with Chelsea in recent days, has scored 122 goals for Los Blancos in six seasons at Real Madrid.