Arsenal were keen to make the striker their marquee signing during the summer transfer window but the Frenchman remains happy at the Santiago Bernabeu
Goal understands that Gunners boss Arsene Wenger was happy to wait until later in the summer window to launch a bid for the 27-year-old, with the France international happy at the Santiago Bernabeu and his employers not looking to sell.
Wenger refused to rule out a bid last week, adding that he will attempt to sign an "exceptional player" if one becomes available, but Benzema's representative, Karim Djaziri, insists that his client is going nowhere.
"Karim is very happy at Real Madrid and he will be a Real Madrid player by the end of this transfer window, 1,000 per cent," the agent is quoted as saying by Sky Sports.
"Karim is not looking to move anywhere this summer."
Manchester United are understood to have expressed an interest in the Frenchman earlier in the transfer window, but Benzema is a favourite of Madrid president Florentino Perez.
Arsenal were prepared to spend around £35 million (€50m) on Benzema as they look to land another marquee summer signing following the arrivals of Ozil and Alexis Sanchez in the last two years.
Goal understands Wenger is prepared to continue with Olivier Giroud as the club’s main striker next season if a pursuit of Benzema failed to bear fruit, with Sanchez and Theo Walcott also able to play as central strikers.