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Arsenal have confirmed that Denilson has rejoined Sao Paulo on another season-long loan deal.

The Brazilian returned to his former club last season and has agreed to go back for the 2012-13 campaign.

Arsenal had been hoping to sell the out-of-favour midfielder on his return to the Emirates this summer.

But they were unable to find a buyer and although Sao Paulo were unable to afford the asking price, they were keen to have the 24-year-old back on loan.

Denilson was a regular during his previous loan spell, making 47 appearances and helping the team finish sixth in last year's Campeonato Brasileiro.

Denilson played 153 games for the Gunners, scoring 11 goals.

But with first-team opportunities limited ahead of the 2011-12 season, he returned to his hometown club last summer.