BERLIN (AFP) - Arsenal goalkeeper Jens Lehmann will not be signing for Borussia Dortmund due to "personal reasons", the German Bundesliga club announced Friday.

Germany goalkeeper Lehmann is out of favour at Arsenal and looked to be heading back to his former club, who had offered him a contract until the end of the season.

The 38-year-old has lost his Arsenal place to Manuel Almunia and Dortmund had been trying to put together a deal to take him to the Bundesliga.

But Lehmann, who had a few weeks ago expressed his wish to stay in London for his childrens' sake, has now changed his mind.

Lehmann said: "It saddens me to disappoint Dortmund officials who made huge efforts to sign me and who gave me a lot of time to think things over."

Arsenal manager Arsene Wenger had played down newspaper reports of Lehmann's move to Dortmund on Wednesday.

"I deny that Jens has agreed personal terms with Dortmund and I deny that we have an agreement with Dortmund," the Frenchman said.

Lehmann is out of contract at the end of the season and the Gunners are believed to be ready to offer him a free transfer.

Even though Wenger routinely fields second-string sides in the League Cup, there was no place in the team for Lehmann on Wednesday with Lukasz Fabianski in goal for Arsenal.

German coach Joachim Loew meanwhile said: "Our position towards Jens Lehmann will not change with this decision (to not join Dortmund)."

Lehmann, who played at Dortmund between 1999 and 2003, said several times that he would be willing to change clubs during the winter break to boost his chances of playing for Germany at Euro 2008.