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Arsenal defender Sead Kolašinac returned to Schalke on a loan deal in the winter market, with the hope of helping the German club avoid relegation.

The left-back made 15 league appearances in the second half of this campaign, but he couldn’t stop the Bundesliga side dropping to the second division.

His contract at Arsenal runs until 2022 and earlier this month, Bild reported Schalke ‘definitely want’ to retain the Gunners owned player beyond his loan spell.

Bild’s claims were backed up by Halterner Zeitung, but they stressed Dimitrios Grammozis’ side could struggle financially to retain the Bosnia and Herzegovina international.

According to WAZ, relayed by Spox, Schalke sporting director Peter Knäbel held a virtual meeting with club members, where he expressed his desire to retain Klaas-Jan Huntelaar and Kolašinac.

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“This is about the topic of identification figures, which is very important for us. When I look at the two [Huntelaar and Kolašinac] of them, how they live the club,” Knäbel said.

When specifically talking about the possibility of keeping the Arsenal man at the club, the Schalke director explained: “You shouldn’t think that your wallet has opened up here.”

Knäbel’s comments suggest the financial aspect of the deal could dampen his side’s chances of making Kolašinac’s loan stay permanent in the summer, even though Schalke retain an interest in signing him.