Arsenal lured Suarez to the Emirates in January as he was reunited with his former Sevilla boss Unai Emery.
But he has so far failed to force his way into the Spaniard’s first-team, failing to make a Premier League start.
Instead, Suarez has been limited to four substitute appearances, with a further two off the bench in the Europa League for Arsenal.
Emery is said to have concerns the 25-year-old is struggling to adapt to the physicality of English football.
And while he wants to give his compatriot the chance to step up, The Sun claim Arsenal have made their decision.
According to the newspaper, Arsenal are planning to send Suarez back to Barcelona in the summer.
And that means the £18m they could have spent to make his move permanent will be allocated to other deals.
Arsenal opting to ditch Suarez comes as Emery seems to have a change of heart over Mesut Ozil.
The playmaker was on the fringes of his manager’s plans after Emery replaced the departed Arsene Wenger.
And there was speculation he could be offloaded during the January transfer window.
However, he has shown his value in recent weeks as Arsenal have overcome Manchester United and Rennes.
It looks increasingly unlikely that Arsenal would allow Ozil to leave north London at the end of the season.
Arsenal legend Alan Smith has heaped praised on the German, who retired from international duty after last year’s World Cup.
“Slowly but surely, Unai Emery is getting his methods across,” Smith said.
“The players are buying into that, Mesut Ozil looks a different player now without the ball.
“Without the ball he’s not switching off, he’s putting in a shift for the team.”