Manchester United and Arsenal have handed a setback in their summer deals as Koke and Juanfran have signed a new deal at Atletico Madrid.

The 22-year-old midfielder has long been a transfer target for the former United manager David Moyes. Despite the Scot’s sacking in April, Koke was still been linked with a move to Old Trafford and was a summer target for the Red Devils.

Meanwhile, Juanfran has been a target for Arsenal and the right-back even confirmed the Gunners’ interest. However, the Spain international duo have rejected a chance to leave the La Liga winners and extended their stay by signing a new deal.

“Koke and Juanfran have extended their contracts with our Club until 2019 and 2018 respectively. Both players are essential to Atlético’s recent successes and their renewals are great news to our Club,” statement on Atletico’s official website read.

“The player from Alicante has established himself as one of the best right-backs in the League and in Europe during these last three campaigns, conquering four titles with our team and the Euro 2012 with the Spanish national team, with which he also played in the Brazil World Cup.”

After signing a new deal, Koke has expressing his happiness after the Spanish capital club allowed him to continue at Vicente Calderón.

Arsenal had Bacary Sagna as the first choice right-back and he has already agreed terms to join Manchester City next season. Meanwhile, United are closing in on signing Athletic Bilbao midfielder Ander Herrera.