Denilson extends Sao Paulo loan spell
The 24-year-old spent the past 12 months at his boyhood club and opted to continue his loan spell for the 2012-13 season.
"Denilson has extended his loan spell with Sao Paulo for the 2012/13 season," Arsenal said on their website.
"Everyone at Arsenal wishes Denilson well for his continued spell with Sao Paulo."
Denilson, who made his first team debut for Arsenal in October 2006 in a League Cup match against West Bromwich Albion, made 153 appearances for the London side and scored 10 goals.
After establishing himself as a regular in the 2008/09 season, he struggled to remain in the plans of manager Arsene Wenger and returned back to his homeland.
Denilson, who hails from Sao Paulo, played 47 times last season helping the club to finish sixth in the Brazilian championship.