Malaga coach Manuel Pellegrini has cast further doubt on the sale of Santi Cazorla to Arsenal.

It was widely reported that a €20 million (£15.6 million, $24.5 million) bid from the Gunners was on the verge of being accepted by Malaga, with the North London club also reportedly getting the go-ahead from Cazorla.

However, Pellegrini has poured cold water on those suggestions, saying, accepting the reported price would be as good as gifting the player away.

"Selling him for 20 million is to gift him away, I don't think the club is in a position to do that or has the intention to do it," Pellegrini was quoted as saying at a press conference in Venezuela where the Spanish club are on a pre-season tour.

"If important offers come in for players they are always worthy of consideration, but I don't think that for 20million Santi is going to leave the club because it would be, as I said, a gift."

Arsene Wenger expressed his admiration for the player in a press conference in Beijing, but refused to acknowledge his interest. The Frenchman is a big fan of the Spanish international's talents, and had tried to bring the playmaker in last year from Villarreal, but lost out to Malaga.

The only issue, albeit a big one, which might force the Spaniards to sell their best player is the precarious financial situation they find themselves in. Several players, including Cazorla, have not received part of their salary, with Malaga also still owing Villarreal a part of the transfer fee from last year.

While the club is owned by rich Middle-East owners, it still remains unclear whether they are willing to dispense with the cash needed to keep the club in the top tier in Spain. According to new regulations, if Malaga do not clear their debt, they could be demoted to the second division and barred from playing in the Champions League next season, despite finishing fourth.