In the wake of some distinctly under-par performances from current first choice Manuel Almunia and understudy Lukas Fabianski, the Gunners have been linked with a string of goalkeepers over the summer.
The 26-year-old enhanced his reputation at the World Cup in South Africa, single-handedly stopping England from topping Group C on goal difference with a string of point-blank saves for Slovenia.
However, the international's agent has revealed that Arsene Wenger has opted against bringing him to Emirates Stadium.
"Handanovic will not be moving. Arsenal have decided not to spend money to buy a goalkeeper," Federico Pastorello told Tuttomercatoweb.com.
A deal for Fulham's Mark Schwarzer is thought to be close as the Gunners continue their search for a worthy custodian.
Arsenal were by no means the only party interested in Handanovic, with several Serie A sides also believed to be keen to recruit the keeper.
But Pastorello doubts Handanovic will be moving to pastures new this year.
"Fiorentina and Juventus? They have already solved their needs," he said.
Former Celtic stopper Artur Boruc recently made the switch to the Viola, while the Bianconeri secured the signature of veteran stopper Marco Storari from AC Milan.
By Tom Littlefield
