The Gunners identified the Ecuador midfielder as their top target and were prepared to splash the cash to sign him this month.
Arsenal failed with two bids for him, the last of which stood at £70m, and there were suggestions that they could consider tabling a third offer for him on deadline day.
Brighton have continued to stand firm and made it completely clear that he is not for sale in the ongoing window.
And it has been claimed that Arsenal have finally given up on their pursuit of Caicedo this month.
The Gunners are no longer pushing to sign him and have determined that Brighton are not going to budge on the last day of the window.
Caicedo wanted the move and his social media outburst forced Brighton to keep him away from the club until the end of the window.
However, Brighton seem to have succeeded in their attempts to keep him at the club beyond the end of tonight’s deadline.
Arsenal have turned their attention towards trying to sign Jorginho from Chelsea today.