The Mirror today reports that the Gunners are thought to be unlikely to make a move for the playmaker in the January transfer window because of a lack of funds.
They claim that a short-term deal or loan for alternative players would more likely, with a focus on “clearing the decks” first.
Norwich are keen to hold on to their star and appear willing to push for maximum value knowing that, as it stands, they are on course for a Premier League windfall in the summer anyway.
The Canaries have bounced back superbly from finishing bottom of the top flight last season and are currently top of the Championship, with a six-point cushion to the play-offs.
They have worked themselves into that position despite a host of injuries, and will be confident of finishing the job in the second half of the season if they keep their current squad together.
Argentine creator Buendia proved his worth to Norwich last weekend with a star turn and the winning goal in a tight victory over Barnsley to keep their advantage at the top of the table.
After that match, head coach Daniel Farke said that he was not worried about the speculation over Buendia’s future and was confident he would remain at the club beyond this month.
With the club appearing willing to back him with a hefty price tag, a move is looking increasingly less likely to happen.