Hertha Berlin have ruled out a permanent move for on loan Arsenal midfielder Matteo Guendouzi, according to reports.

The 21-year-old joined the Bundesliga club at the start of this season, following a rift with Gunners boss Mikel Arteta.

In Gunedouzi’s last appearance for Arsenal, the midfielder was involved in a post-match clash with Brighton striker Neal Maupay.

The Seagulls forward had injured Bernd Leno during the Premier League clash in June, before scoring a late winner.

Guendouzi's final game ended with a scuffle with Brighton striker Neal Maupay

Reports suggested that Guendouzi had been bragging about his hefty salary throughout the game.

He escaped a ban from the Football Association, but Arteta was said to be livid, making him train away from the first-team for the remainder of the season.

It was then decided to allow Guendouzi to continue his development away from the Emirates with Hertha.

Guendouzi has enjoyed a positive start to life in Germany, with his current manager Bruno Labbadia highlighting his attitude on and off the pitch.

“We’re glad we managed to recruit him,” Labbadia said. “He is a very, very good player, who has a sense of space and is very technically skilled.

“Although he’s young, he gives instructions. He doesn’t care at all that he doesn’t speak the language.”

Guendouzi is enjoying his time at Hertha, but looks likely to return

However, according to BILD Hertha have no intention of matching Arsenal’s £29million valuation for the player, meaning he is destined to return at the end of the current campaign.

Hertha sporting director Michael Preetz claimed last year that all options were on the table for Guendouzi and they would wait to see how the market developed.

He said: "We are happy that he is here and that he enriched our game from the start. We’ll see everything else next summer. How the prices will develop by then and what Arsenal are planning then, nobody can say today."

But the Gunners’ price-tag is far beyond their reach and it is reported that they are already looking at alternative targets.