Arsenal and Liverpool's hopes of signing Jackson Martinez have been dashed after the striker signed a contract extension, which will keep him at FC Porto till 2017.

The Colombian international was linked with a big money move to the Premier League in the summer transfer window.

Arsenal and Liverpool were keen on signing the free-scoring striker, while Manchester United and Chelsea were reportedly monitoring the player.

Martinez's new deal will see his release clause set at €35m (£28m) as he extends his stay with the Portuguese outfit by another year.

"Jackson Martinez renewed his contract with FC Porto, adding one extra year to his current agreement. The Colombian is now tied to the Dragons until July 2017, with a release fee set at 35 million euros," a statement read on Porto's official website.

"The striker is starting his third season in white and blue, having become the top goal scorer of the Portuguese League in the first two seasons in Portugal, scoring 26 goals in 2012/13 and 20 in 2013/14."

The Gunners have already signed Alexis Sanchez from Barcelona to bolster their attacking division. The Chilean international can play on the wide positions and also as a centre-forward.

Arsenal have the services of Olivier Giroud as the first choice striker in the squad. The French international is well supported by Yaya Sanogo and Joel Campbell as the recognised strikers in the squad.

Meanwhile, Brendan Rodgers needs to bring in a striker to fill the huge void left by the departure of Luis Suarez.

The Uruguayan international, who was the Reds's and the Premier League's top scorer last season, completed his switch to Barcelona last month.

With Martinez signing a new deal, both Arsenal and Liverpool need to turn their attention elsewhere if they intend to sign a striker in the ongoing transfer window.