The Nerazzurri and Serie A champions Juventus were both linked with the Germany international on the final day of the transfer window, but Inter's Piero Ausilio said the Gunners were asking for too much, per Ben Grounds of MailOnline:
"The only negotiations we really entered into for a centre-back was Shkodran Mustafi, but when we saw his club's demands, we let it go."
According to Grounds, Inter had offered to take Mustafi on loan for a £4.6 million fee with the option to buy him for a further £23 million next summer.
But Arsenal were said to be eager to recoup more of the £35 million they spent to sign Mustafi from Valencia last summer, which is understandable given a deadline-day deal would have made finding a replacement almost impossible.
In any case, a move away from the Emirates Stadium always looked unlikely for Mustafi after the player's father assured Arsenal fans his son was staying put on Thursday, per Goal's Chris Wheatley:
Mustafi arrived in north London last summer with high expectations, presumably seen as the long-term successor to compatriot Per Mertesacker, who will take a role coaching the club's academy at the end of this season.
However, the former Everton defender hasn't been the instant success many in north London might have hoped, and the Press Association's Mark Mann-Bryans suggested his place in the starting XI is far from assured:
Arsenal's willingness to sell Mustafi—even for the right fee—is surprising given their backline has been badly affected by injuries this season, with left-backs Nacho Monreal and Sead Kolasinac both playing centrally at times.
Mustafi remains a Gunner for the time being as a result of Arsenal's stubborn stance on a sale, leaving Inter to examine other options in pursuit of a central defender.