Sources close to the Spanish club declared the Gunners captain and French World Cup winner was close to finalising a four-year contract.

Henry, Arsenal's all-time record goalscorer, admitted the shock departure of vice-chairman David Dein last season had been unsettling for everyone at the club.

Manager Arsene Wenger will have no doubt tried to convince his talisman to remain at the club, confident they could again compete for honours both at home and abroad.

His departure appears certain to cast further doubt on Wenger's own future at Emirates Stadium.

Henry, who succeeded Patrick Vieira as Gunners skipper two years ago, has long been linked with a move to the Nou Camp - and speculation about a move grew after Arsenal were beaten by Barca in last year's Champions League final.

The 29-year-old then penned a new four-year contract and revealed he planned to spend the rest of his career with the north Londoners.

But the rumours refused to go away, growing in intensity after Henry revealed his disappointment at Dein's departure.

He recently admitted he was flattered to be linked with European champions AC Milan but poured scorn on reports he had already agreed a deal with Barca.

Henry, who missed the final two months of last season through injury, said less than a fortnight ago: "Last season, people were announcing all over the place that I was leaving.

"Some people wrote that it would happen for sure but at the end of the day I stayed at Arsenal. It could be the same this year.

"I've not taken any decision and my name is not up on any departures board.

"If something happens, I will tell everybody."

He added: "Nothing is done. I repeat, nothing.

"At this moment, I am an Arsenal player and in the same situation as I was last year."

One particular report in France prompted his agent Jerome Anderson to order legal action against the publication.

Anderson refused to comment on tonight's developments, while there was also no word from Arsenal.

The news about Henry came on top of further speculation about Wenger's Gunners future, with Real Madrid president Ramon Calderon claiming the Frenchman was on their shortlist of targets should Fabio Capello leave the Bernabeu.

Wenger still has a season left of his current contract, and the board are naturally keen to agree an extension as soon as possible.

However, with continued speculation over whether the 57-year-old will look to finish the work he started back at Highbury a decade ago, Real again seem ready to try to temp Wenger to Spain.

Capello - who still has two years on his contract - led Madrid to their first title in four years, but that has not stopped speculation he could leave the club.

Calderon said: "[Sporting director Predrag] Mijatovic has spoken to me about [Michael] Laudrup, [Ronald] Koeman and Wenger, among others."

Mijatovic will be central to any decision, with the club likely to announce early next week whether there will be a change in the dugout.

"We are waiting on the report from the club's sporting department," Calderon continued.

"They will make recommendations as to whether Capello should continue as coach. We will decide on Monday or Tuesday."

Wenger, meanwhile, was hoping to soon be able to appoint a new director of football to share the workload of transfer dealings, which have increased on the Arsenal manager since the shock departure of Dein.

Reading's Nicky Hammond had been linked with the position, but former Arsenal player Gilles Grimandi, currently working as a scout for the Gunners in France, was understood to be a front runner.

Wenger continued reshaping his squad yesterday with the sale of striker Jeremie Aliadiere to Middlesbrough for £2million.

The 24-year-old admitted he had become frustrated at being only a bit-part player, despite having seen more first-team action with Arsenal last season.