Eddie Nketiah saw a loan move to join Augsburg fall through because Unai Emery blocked his departure.
Football.london reports that Emery believes that the young striker could still have a role to play in the first-team squad before the end of the season.
It claimed that the Arsenal boss believes that Nketiah is good enough to be a back-up to both Pierre-Emerick Aubameyang and Alexandre Lacazette.
Nketiah looked set to join Augsburg, following fellow academy youngster Emile Smith Rowe to Germany.
The latter made a late move to join RB Leipzig on loan and Nketiah’s move appeared close but fell through in the final stages.
Nketiah is highly rated at Arsenal, with many tipping him for big things.
One of those is clearly first-team boss Emery, who has shown enough faith in the striker to keep him in and around the club for the remainder of the season.