The Brazilian midfielder is set to return to the Emirates after a year on loan at the Morumbi, with Arsene Wenger seemingly interested in giving him more playing time
The 24-year-old midfielder joined the Brazilian club on a season-long loan in July with hopes of finding regular first-team action after he had made just six Premier League starts in 2010-11.
Last month, Sao Paulo vice-president Juan Paulo de Jesus stated that Denilson did not want to return to London, but the Morumbi club failed to reach an agreement with the Gunners regarding an extension to the loan deal.
"I will stay at Sao Paulo until June 30," he said via a statement. "Then I will return to Arsenal.
"This season, I had more assists, I secured a place in the starting team and I had good matches. I also had a good run of matches and I have not been sent off.
"I would like to stay more six more months, but this decision was made by Arsenal, with whom I have a contract.
"I will not be unhappy in London, because I am returning to one of the biggest clubs in the world."
Denilson, who signed for Arsenal in 2006, has a contract with the Gunners until 2013.