Arsenal have decided against turning forward Julio Baptista's loan deal from Real Madrid into a permanent transfer.
Baptista scored four goals in a Carling Cup game at Liverpool
The 25-year-old Brazilian scored 10 goals in 35 appearances but found the net only three times in 24 Premiership appearances in his season at Arsenal.
"Arsenal have told me they are not able to buy me and so all I can do is return to Real Madrid," Baptista told Spanish newspaper Marca.
Baptista joined Arsenal, with Jose Antonio Reyes moving the other way.
The Spanish season has not yet finished and no decision has been made on Reyes' future.
Baptista, who scored four goals in Arsenal's 6-3 Carling Cup win against Liverpool at Anfield in January, added: "I have enjoyed my season with Arsenal and in England.
"I adapted well. I didn't play much at first but finished much better. The first year is very difficult.
"The English league is very strong and very competitive with great teams. Manchester United and Chelsea are very strong and it is difficult to compete against their great squads."
Baptista joined Real from Sevilla for an initial fee of £13.8m in July 2005.