After finishing his first season in north London following his transfer from Sampdoria last summer, it was reported Torreira was unhappy with life in England and that the Uruguayan midfielder was eager to return to Italy.
AC Milan emerged as a reported favorite to sign the 25-year-old, as it was suggested Torreira would jump at the opportunity to reunite with the team's new manager and his former boss at Sampdoria, Marco Giampaolo.
However, a source told Dean reports out of Italy have been "wildly exaggerated" and the notion he is miserable in England is "nonsense."
But, if Arsenal were to sanction his departure, the Premier League side is expected to demand a fee significantly higher than the £25 million they paid.
Torreira scored twice and provided two assists in 24 Premier League appearances last season.