Samir Nasri has revealed he is ready to open talks with Manchester City about extending his stay at the Etihad Stadium.
Blackburn have signed young defender Michael Keane on loan from Manchester United for the remainder of the season.
The Spain international could have reportedly increased his salary had he accepted a move to the Emirates Stadium.
"It is true that I had an offer from Arsenal that any player would have liked to have accepted," Juanfran said to marca.com.
"But I am very happy here.
"For me, as everyone knows, there is no better club than Atletico."
The 28-year-old joined the Colchonero club in January 2011 from Osasuna and has four years left on his contract at the Vicente Calderon.
Juanfran has been a regular in Diego Simeone's team and won the Europa League and the European Supercup with Atletico in 2012 as well as the Copa del Rey last season.