Slovenia coach Matjaz Kek advised Benjamin Sesko against moving to Saudi Arabia amid reports that the RB Leipzig forward has turned down a move to Al Hilal.
The Daily Star reported on Tuesday that Sesko rejected a lucrative move to the Middle East before the 7pm deadline.
The Saudi club had reportedly identified the 22-year-old as their third-choice target in their search for a marquee forward to join Aleksandar Mitrovic in their squad for the FIFA Club World Cup this month.
Arsenal have been long-term admirers of the Slovenian striker but were unable to sign him last year when he chose to remain in Germany.
Now, however, he has become central to negotiations between the Gunners and RB Leipzig.
As negotiations continue, Kek admitted it could be a mistake if Sesko moved to the Saudi Pro League club at such a young age.
"Benjamin Sesko and Saudi Arabia? I would advise him to never go there. At least not at his age," he said after Slovenia's 2-1 friendly win over Bosnia and Herzegovina on Tuesday.
"This [the interest] is a great recognition, these are clubs that mean a lot.
"It's not that I underestimate the Saudi Arabia league, on the contrary, I worked there at Al Ittihad and the club is still a part of me.
"I also watch the league regularly but the time will come for Sesko for that.
"I am convinced that Benjamin himself and the people who care for him will be smart enough to find a solution.
"And that is for him to go somewhere where he can play football, because that is the only way he can be happy."
Sesko has missed both of Slovenia's friendly wins against Luxembourg and Bosnia this month as he is currently recovering from a minor knee issue.
Arsenal will have to wait until the transfer window reopens on Monday, June 16, before they can attempt to complete a deal for the Slovenian.