Arsenal boss Arsene Wenger says Edu looks set to stay at the club until the end of this season.
The 26-year-old Brazilian midfielder, whose contract comes to an end in the summer, was expected to move to Spanish side Valencia.
But the move appears to have broken down, with Valencia reluctant to pay the asking price for a player available for nothing at the end of the season.
"Nobody has really come in for him at the level we expected," said Wenger.
"I had a conversation with Edu on Saturday when I understood that he might not leave.
"He told me that if he has to stay he would be completely committed.
"Once a player says that to me - and knowing Edu as I do - I have no doubts
Asked if he still expects Edu to leave in the summer when his contract
expires, Wenger added: "I didn't ask whether he had signed for someone
Edu has only featured in nine games for the Premiership champions this season and has failed to agree a new deal at Highbury.
He cost the Gunners just over £5m when he joined from Corinthians four years ago and has since become an international.
It is thought Arsenal were asking for £1.5m for the player to leave the club in the January transfer window.