FRIDAY, 10:20am: Arenas has reached an agreement to sign with the Shanghai Sharks, according to a 361 Sport report out of China (translation via HoopsHype). The deal will reportedly be for one year with an additional one-year option. It's worth noting again that Arenas was previously said to have reached an agreement with the Guangdong Southern Tigers, which fell through, so nothing is official until Arenas and the Sharks sign on the dotted line and formally announce the deal.
TUESDAY, 8:30am: Arenas was seen at the Sharks' facilities, practicing with the team, according to Emiliano Carchia of Sportando. Shanghai is already carrying two import players, the maximum allowed, so Carchia speculates that Elijah Millsap could be released to clear a spot for Arenas, if the team decides to sign him.
MONDAY, 8:58am: Nearly two weeks ago, it was reported that Gilbert Arenas had agreed to a deal with the Guangdong Southern Tigers of the Chinese Basketball Association. However, since then, the agreement between the two sides appears to have fallen apart. Guangdong added Terrence Williams, and while the team still seemed open to signing Arenas, the former NBA All-Star was reportedly required to travel to China for a tryout.
With nothing finalized between Guangdong and Arenas, ESPN.com's Marc Stein reports that Arenas may be exploring other options in China. According to Stein (Twitter links), the 30-year-old is now auditioning for the Shanghai Sharks, a CBA team owned by Yao Ming. When Arenas first agreed to play for Guangdong, Stein reported that the veteran guard had also been in talks with Shanghai, so there appears to be some level of mutual interest.
While Arenas didn't make much of an impact last season with the Grizzlies, reports this summer suggested that he's in good shape and is fully healthy. Signing in China would allow Arenas the opportunity to return to the NBA late in the season if he impresses overseas, since the CBA regular season ends in March.