The 23-year-old goal-getter has netted 18 league goals in 52 appearances for Nice since arriving from Lyon in 2008 - seven of them coming this season in an impressive first-half of the campaign for the youngster.
As a result, Remy was linked with a move away during the winter window, with the Gunners, AC Milan, Fiorentina and Rennes all named as possible suitors for the starlet.
However, the France international's former club Lyon have the option to buy their former front-man back - and Nice president Gilbert Stellardo revealed that the seven-time Ligue 1 champions hold all the cards regarding Remy's next destination.
“The terms of Lyon’s offer did not match those of Rennes, so we did not accept it,” Stellardo told the AFP news agency.
“Lyon used their right of first refusal. Lyon had all the power and there were three possibilities open: either Lyon would accept the deal proposed by Rennes, he was transferred to Rennes, or we had to accept that it does not take place, and that’s what happened.”
Arsenal boss Arsene Wenger publicly admitted that he was on the lookout for a forward with Robin van Persie and Eduardo sidelined and Nicklas Bendtner only recently returning to fitness.
Speculation suggested the Emirates Stadium supremo was lining up a last-ditch move for Remy on the final day of the transfer window in order to bolster his attacking options ahead of the Gunners' Premier League run-in.
No move from the Frenchman was forthcoming, but Remy has stated that he is happy to concentrate on playing well for Nice and trying to force his way into Raymond Domenech's World Cup squad in the summer.
“It’s OK, I’ll stay in Nice,” he said.
“I will be training on Tuesday. I am not disappointed. This has lasted too long.”
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