Atletico give up on Arteta

The Spanish side have been locked in protracted negotiations with Rangers for Arteta for the last few weeks, but have failed to seal the deal.

Atletico had hoped to secure a player-swap deal for Arteta, but Rangers preferred a straight cash deal.

New Atletico coach Gregorio Manzano has now revealed that the club have pulled the plug on their hunt for Arteta after growing increasingly frustrated in their attempts to sign the Spanish Under-21 international.

"Arteta is no longer a priority," said Manzano. "I am happy with my midfield and would prefer to strengthen our defence."

Atletico sporting director Toni Munoz confirmed that the club had given up on Arteta.

"Yes it's true we have changed our minds about Arteta," said Munoz.

"We have not reached an agreement with Rangers so we have decided to drop him from our list of possible signings.

"It would also have been a problem to cope with his annual salary even though Arteta was willing to take a pay cut to join us."

The news will be a blow to Rangers boss Alex McLeish as he had eyed the money from Arteta's transfer to fund his own new signings.