Inter Milan director Piero Ausilio has revealed that the club walked away from a deal for Shkodran Mustafi due to Arsenal's demands for a £35m fee.

The German international only joined the North London outfit last year from Valencia and he went on to make 26 Premier League appearances.

However, the defender has featured in just one of the Gunners' three league matches this season, indicating that he has dropped down the pecking order.

Inter were keen to take Mustafi to San Siro, but their offer of an initial £4.6m loan fee with an option to buy for £23m was knocked back by the Gunners.

"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," the Daily Mail quotes Ausilio as saying.

Meanwhile, Arsenal were able to retain the services of Alexis Sanchez, despite interest from Manchester City, but they did not bring in any players on transfer deadline day.