The winger joined Utrecht on a season-long loan deal in August after a difficult two-year stint at Celtic, but struggled to secure regular game time at the Dutch club with just five senior appearances to his name.

"To his own regret ... (Daniel has) failed to become a permanent fixture in the FC Utrecht first team," Utrecht technical director Jordy Zuidam told the club's website.

"We have been open and honest with each other and, together with Daniel and Manchester City, came to the conclusion that it is better for all parties if Daniel goes for his chances elsewhere."

Shortly after, Aarhus confirmed the 22-year-old had joined on loan until the summer.

The Danish Superliga club is currently home to fringe Socceroo Alex Gersbach and Olyroo Zach Duncan, while midfielder Mustafa Amini enjoyed a successful run there from 2016 until 2020.

"Arzani is a talented and exciting player who can perform both in the offensive part of midfield and on an edge," club CEO Jacob Nielsen said.

"He is a technically strong player, rounded by the Australian mentality, as we know well in AGF, where it is healthy virtues and a good work mentality that characterise the football players.

"So he will fit in well with our squad in the spring, where we enter a period with many matches."

Arzani bolted into the Socceroos' 2018 World Cup squad off the back of form for Melbourne City and signed for Manchester City in August that year.

He was loaned to Celtic but tore his ACL in his first senior appearance and had a long road to recovery before departing the club in May 2020.

Australian Associated Press