The Croatia international was being linked with a move to North London, but has signed for the Italian giants instead.
Marcelo Brozovic’s agent revealed a fortnight ago that Arsenal were interested in his client, but the Gunners have now missed out on the Croatian midfielder.
The 22-year-old has penned a two-year loan deal with Inter Milan, with the playmaker spotted at the airport as he arrived in Milan to start his new adventure.
In terms of strengthening their midfield, the Gunners have signed Polish youngster Krystian Bielik this month, while Francis Coquelin has been recalled from a loan spell at Charlton and has featured in the first-team.
Injuries to key midfield men such as Jack Wilshere, Aaron Ramsey and Mikel Arteta have disrupted Arsenal’s momentum this term.
Brozovic is highly rated following strong performances for Dinamo Zagreb over the last two years and will join compatriot Mateo Kovacic at Inter.
He made his debut for an up-and-coming Croatia senior side last year, and has now amassed seven caps, scoring one goal along the way.
Inter have been busy in the January window, signing both Xherdan Shaqiri and Lukas Podolski on loan deals until the end of the season.