According to a story in today's Metro from Jamie Sanderson, Arsenal midfielder Denilson will return on loan to Sao Paulo, the club where he began, for another year:

However, after failing to attract any interest in the under performing midfielder, despite dropping their asking price to just £4 million, he has now been allowed to return to Sao Paulo for a second loan spell [...]

And the terms are actually not too shabby for Arsenal, either:

Arsenal will pocket a £500,000 loan fee as part of the deal, and have also included an option that entitled them to cancel the loan at any point if they receive a suitable offer to sell the player elsewhere.

£500,000 isn't quite the £4 million that Arsenal were asking for as a transfer fee, but it is something, and having the option to sell the player whenever an offer arrives leaves Arsenal in good shape.

The official club website of Sao Paulo has a bit on the loan here.