Gremio are sending defender Andre Santos back to parent club Arsenal.
His loan is set to expire in July and the Brazilian club have confirmed they do not intend to turn the move permanent.
"We signed Andre Santos for Copa Libertadores and his contract expires in July," Gremio's director of football Marcos Chitolina told UOL.
"It would be too expensive for Gremio to renew his contract; he is a very expensive player.
"We thank him for everything he has done, but we will keep Alex Telles and Fabio Aurelio."