The Gunners had wanted to loan Bailly until the summer, when they would make a move for a permanent transfer. But United are not keen to sell to a Premier League rival, especially at a stage of the season when squad depth is required. Arsenal urgently require defensive cover, having recently lost Rob Holding and Hector Bellerin to injuries.
Bailly has started just once is Solskjaer's seven games so far, and received a red card during that game. The Ivorian is keen to prove himself under Solskjaer, however, having grown disillusioned under previous manager Jose Mourinho. United travel to Arsenal this Friday in the FA Cup, with the two sides looking to book a place in the fifth round of the competition.