Denilson seals loan deal with Sao Paulo
Manager Arsene Wenger said at the weekend that the 23-year-old would be returning to Brazil for the 2011/12 season, and the club confirmed his destination on their website.
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 for a regular start last season.
Denilson, who is from Sao Paulo, played 13 times for the Brazilian club in 2005-06 before his move to London in a 3.4 million pounds transfer.