The clubs had been in discussions over the move for the duration of the transfer window but the 1700 GMT deadline passed on Monday without any official word on the player's future.
It was understood that Arsenal had agreed a fee with Zenit, during which time Arshavin, one of the stars of Euro 2008, accepted personal terms and passed a medical.
Reports suggested the deal collapsed when the clubs could not reach an agreement, with the claim being the move broke down over the size of the fee and compensation Zenit would be paid for allowing Arshavin to break his contract.
It was understood that Arsenal had agreed a fee with Zenit, during which time Arshavin, one of the stars of Euro 2008, accepted personal terms and passed a medical.
Reports suggested the deal collapsed when the clubs could not reach an agreement, with the claim being the move broke down over the size of the fee and compensation Zenit would be paid for allowing Arshavin to break his contract.
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