The former Southampton man is at the bottom of the Gunners' defensive pecking order and is now in the final six months of his contract at the Emirates Stadium.
Cedric was inevitably tipped to leave the club last summer, but the Portugal international reportedly indicated to Mikel Arteta that he intended to stay and fight for his place.
However, with the consistent Ben White and the in-form Takehiro Tomiyasu battling for starts at right-back, Cedric has made just one Champions League appearance and one EFL Cup appearance in 2023-24.
Still waiting for his first Premier League minutes of the season, Cedric has been an unused substitute in each of the Gunners' last 11 top-flight matches, and Arteta also has Jurrien Timber working his way back from an ACL injury.
Cedric has been free to talk to foreign clubs since the start of January, and while a move to Spanish giants Villarreal was briefly mooted, the strongest interest is said to have arrived from Turkey.
Besiktas and Galatasaray are rumoured to have been mulling over a deal for the 32-year-old, and the Turkish winter transfer window remains open until Friday, February 9.
However, the Evening Standard reports that discussions have not yielded a positive solution, and Cedric will remain with Arsenal before leaving on a free transfer at the end of the season.
After failing in his efforts to win his place back in the side, Cedric was open to a departure in January, but Galatasaray instead brought Serge Aurier in from Nottingham Forest.
Fellow Super Lig side Trabzonspor also did not firm up their interest, but the report adds that Portuguese champions Benfica - who were looking to sign him last summer - could reignite their interest when he becomes a free agent.
With no other offers forthcoming, Cedric - who is believed to be earning £65,000 a week at Arsenal - will now focus all his efforts onto helping Arteta's side finish the season as strongly as possible as an emergency right or left-back.
The defender joined the Gunners on loan from Southampton in January 2020 before making his move permanent that same summer, and he boasts two goals and five assists from 61 games in an Arsenal jersey.
Cedric's most productive campaign in North London came in the 2021-22 season, where he made 16 Premier League starts and 21 top-flight appearances in total due to injuries to Kieran Tierney and Tomiyasu.
Arsenal sit two points behind Liverpool in third place in the Premier League table and return to action on Sunday, taking on London rivals West Ham United at the London Stadium.