Czech Republic midfielder Tomas Rosicky is to stay on at Borussia Dortmund despite being linked with Arsenal.

The 25-year-old was a Bundesliga record £8 million signing from Sparta Prague in 2001 but looked set to leave the Westfalenstadion during the transfer window.

Dortmund held negotiations with Atletico Madrid, and Arsenal were also said to be keen, but an apparent about-turn means Rosicky will stay in Germany, where his contract runs until summer 2008.

"Tomas Rosicky has a contract in Dortmund and he will be staying in Dortmund," said agent Pavel Paska.