The left-back, often criticised by experts and supporters on social media websites for his consistently poor performances, moved on loan to Gremio in February.
However the Brazilian club can’t afford to make the move permanent and have ended their interest in signing the player in a full-time capacity.
Gremio’s director of football Marcos Chitolina said: “We signed Andre Santos for (the) Copa Libertadores and his contract expires in July.
“It would be too expensive for Gremio to renew his contract; he is a very expensive player.”
The 30-year-old will return to Arsenal in July, but it is highly unlikely he will figure regularly for the club anymore.
The Gunners signed Naxto Monreal in January from Malaga, and the Spanish international has rotated with youngster Kieran Gibbs for the regular role in the back four.
Santos moved to the Emirates for £5.9m from Fenerbahce in August 2011, but has only made 13 Premier League starts in almost two years. His last goal for the club came on the final day of the 2011-12 campaign away at West Brom.
Gremio’s left-back options include the former Liverpool defender Fabio Aurelio, who returned to his homeland last summer.
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