Madrid coach Rafael Benitez says he has no reason to believe that Benzema will leave the Santiago Bernabeu this summer.
Arsenal had their sights set on the France international since May, with the gunners believing he was open to a move.
“Benzema, I think, is going to stay with us,” he told reporters ahead of his side’s Audi Cup semi-final clash with Tottenham. “I am very happy with him. I have no reason to think he will go.”