Manninger: Left in limbo (RossKinnaird/Allsport)

The Austrian goalkeeper has been with the Spanish top-flight club since the start of July and looked set to complete a move.

But the deal broke down when Espanyol renegotiated the player's contract - leaving the Gunners and the goalkeeper fuming.

Vice chairman David Dein said: 'We are astonished at Espanyol's behaviour. They entered into a contract with us on July 3 - and Alex has been with them since the 15th.

'He passed his medical the following day and indeed has played several friendly matches for the club. We understand over the past week they have tried to renegotiate the terms of the agreement with the player - naturally without success.

'Their general manager (Jose Lluis Marco) rang yesterday apologising for the cancellation of the contract. We are appalled by the whole affair and will now leave it to FIFA and the lawyers.

'For the good of the game it is vital that clubs and players should be able to trust each other to respect contracts.'

Manninger himself said: 'I am extremely disappointed with what has happened with Espanyol. Having entered into a contract with them on July 7, training with them and playing in five matches, they have unilaterally decided to cancel my contract.

'I find the actions of Espanyol totally disgraceful and unprofessional - and I will now refer the case to FIFA.'

The Spanish club confirmed on their website tonight they had decided to release the 25-year-old.

'The Austrian goalkeeper has reached an agreement to terminate his contract and will leave the Espanyol club briefly.'

Two days ago Manninger fired a broadside at the club's coaching staff. claiming they blamed him for several drab displays.

Manninger spent last season on loan in Italy with the now defunct Fiorentina.