Blaise Matuidi

Arsenal and Manchester City have suffered a huge setback in their pursuit of Blaise Matuidi after the Paris Saint Germain star committed his future to the club by signing a new deal.

The French international is a pivotal player for manager Laurent Blanc but as his contract with the French champions ran down a number of big European clubs were keen to persuade him to end his spell in Paris and move away.

However, Matuidi has instead signed a four year extension with PSG to end speculation regarding a possible move, with the Gunners and Manuel Pellegrini's side among the clubs who had been reportedly interested in bringing him to the Premier League.

"I absolutely wanted to continue at PSG. The club's limitless ambition has no equivalent in Europe," Matuidi told the PSG official website.

The powerful midfielder joined the Parisians in the summer of 2011 after they paid €7.5 million to Saint Etienne to secure his services. He has become a key player for PSG since then and this season he has made 25 domestic league appearances, 21 as a starter.

Having signed former Newcastle midfielder Yohan Cabaye during the January transfer window, some reports suggested that Matuidi may have considered leaving the French capital at the end of the season but he has finally decided to stay.

According to French reports, Manchester City tried to convince Matuidi to move to the Etihad Stadium by offering him a contract worth £8m a year. Pellegrini is keen to add another defensive midfielder to provide cover for Fernandinho but it would now appear the club will turn their attention to Porto's Fernando once again this summer.

Meanwhile, Wenger is also reportedly interested in adding another formidable midfield presence after a season that has been disrupted by a number of injuries, with Jack Wilshere, Aaron Ramsey and Mathieu Flamini all enduring spells on the sidelines.

Nevertheless, PSG president Nasser Al-Khelaifi recently warned the Premier League giants to not bid for Matuidi, warning the Premier League duo that his club might just come in for their star players as a result.

"Interest from Manchester City in Matuidi? I am not worried because they know that if they touch one of our players then we will be in opposition to them and we will go and contact their players too."

Arsene Wenger