As revealed by Goal, the Gunners made a late move to hijack the France international's move to Chelsea, after the Blues activated his release clause earlier this week, and appeared to be locked in a straight fight with their London rivals for his signature.
But Goal understands that the Gunners do not plan to press ahead with their bid, with the transfer deadline looming.
Remy had been identified as a possible acquisition following Olivier Giroud’s injury setback, which has ruled him out until the turn of the year.
However, Arsenal do not expect to sign Remy before Monday night’s 11pm deadline, leaving him clear to complete his move to Chelsea.
Jose Mourinho admitted his interest in the Frenchman following his side’s 6-3 win over Everton on Saturday, with Remy set to replace Fernando Torres, who has joined AC Milan, at Stamford Bridge.
Chelsea will pay £8.5 million – the player’s release clause for top-four clubs – for Remy, while Arsenal are pursuing a deal for William Carvalho.
The Sporting midfielder has long been linked with a move to the Premier League and Goal understands that the Gunners tabled a £21.3m bid for the 22-year-old earlier this week and are hopeful of beating the deadline to sign him.