SEAN DAVIS has turned down a move to Middlesbrough, manager Steve McClaren confirmed last night.

The Fulham midfielder has held productive talks with Everton boss David Moyes after agreeing a £5m fee.

Boro were also prepared to pay the same figure, but Davis has already decided his future lays at Goodison Park.

And McClaren, whose side were humiliated 4-0 by an impressive Arsenal yesterday, has admitted he is resigned to losing out.

"When it became apparent we could get Danny Mills on loan that became more important, that took precedent," said the Boro chief. "I understand he (Davis) has been at Everton and at the moment it is highly unlikely that he will be coming here for talks."

New signings Gaizka Mendieta and Mills, who have both signed season-long loan moves, were both saved from embarrassment against the Gunners yesterday.

Mendieta failed to receive international clearance in time to play, which annoyed McClaren who had already made plans to accomodate him in his starting XI.

The Boro boss also indicated he is not too confident that the Spanish international will receive the required paperwork in time for him to make his debut at Leicester City tomorrow.

"At lunch-time we were still expecting it to be sorted out," said McClaren. "We are dealing with FIFA and Italians so we can't be confident of it going through.

"We had to change our tactics totally. And in the end we had two 18-year-olds playing."

McClaren also urged promising right-back Stuart Parnaby to knuckle down and fight for his place after the capture of England international Mills.

"We needed a bit of stamp in that area and I could not believe that we could get a player like Danny on loan," he said.

"Football is competitive. It's competition now for Stuart Parnaby. He is still young and he is a great prospect but we needed competition in that area.

"We have certainly got that in Danny Mills. Stuart Parnaby has got to take that now, that's one of the down sides. It's a loan but he is someone who I would like to have here permanently."

Boro lie second from bottom after losing both their Premiership fixtures, while at the other end Arsenal have joined Manchester United at the pinnacle.

And McClaren, who has doubts over Szilard Nemeth (ankle) and Chris Riggott (back) for tomorrow, was annoyed by the way his side capitulated against an on-song Arsenal.

"Somebody said to me 'well that's Arsenal out of the way' and they're not wrong," he said. "When you catch them on a day like that they are capable of doing that to anybody.

"But it was disappointing because normally we give the top teams a tougher game than Arsenal got today. I don't think you can do yourself justice when you get beaten 4-0. But I have to give credit to Arsenal because the gulf in class was enormous."

Arsenal boss Arsene Wenger warned defenders to expect a lot more from super striker Henry.

The Frenchman was in scintillating form yesterday.

It is now three in three games - including the Community Shield - for the frighteningly-quick Henry, but Wenger is convinced the PFA Footballer of the Year will keep getting better.

"I just feel that it's important for him to go on as far as he can," he said. "There's still more in him than he is doing at the moment and it's important that he keeps taking steps forward."

And Wenger was quick to praise his side after making light work of a trip to Boro.

Arsenal were in cruise control, especially as they led 3-0 at half-time and Wenger said: "I thought it was a great first half for us. We were very sharp and very incisive.

"We managed both a slow and quick tempo. The second half we kept it going as well as we could considering we were doing so well.

"There were a lot of good ingredients and I thought it was very positive."

The Highbury chief also jokingly made light of rival Manchester United boss Sir Alex Ferguson being sent from the touchline at Newcastle United on Saturday.

"They didn't seem to miss him too much because they played better in the second half than they did in the first," he said. "All I know is that I would rather be sent off than one of the players. It's not going to change the game."