It had been reported by Sky Sports that Leicester agreed a club record fee for the midfielder of around £10.5 million with Brazilian side Internacional.
The deal would have been a club record, surpassing the fee they paid for Andrej Kramaric last term.
According to the player himself, no such deal was ever close.
Aranguiz has now agreed to head to Germany – signing on with Bayer Leverkusen to begin his European adventure. ESPN report that the move is worth around €12 million (£8.5 million).
However, The Express quote him as saying this today, as his deal to join Leverkusen edges completion:
"It is important that Chilean players are in the big leagues in Europe.
"That speaks well about the work that we are doing.
"I picked Leverkusen because they always showed interest in me. No other club talked to me. They were always very clear."
So it seemed that Leicester were never truly in an advanced position to sign the player, who many regard as the hidden gem in the excellent Chilean national team.
In heading to Leverkusen he follows in the footsteps of his more illustrious international partner in crime Arturo Vidal. He swapped South America for Leverkusen in 2007 and is now at Bayern Munich and considered one of the best talents in world football.
Aranguiz will be hoping to follow in those footsteps.