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Dembele joined Barcelona from Borussia Dortmund last summer for a staggering £135.5million.
However, his career at the Nou Camp had barely started before he was ruled out for three months with a thigh injury.
In total he has made just eight appearances for Barca so far, with five of them coming from the substitutes bench.
Dembele has been linked with a move to Arsenal this week, with his former Dortmund team-mate Pierre-Emerick Aubameyang, who joined the Gunners in January, reportedly keen on him joining him at the Emirates.
But Hislop believes a move to Atletico Madrid is a more likely option, especially if Barcelona complete the signing of Atletico’s Antoine Griezmann.
“As a sale, no,” Hislop said.
“If Ousmane Dembele leaves Barcelona, I think it would be as a loan.
“I understand the concern, (Philippe) Coutinho coming in, and where does he all fit in.
“But Dembele’s signing wasn’t an afterthought to Coutinho when that deal fell through in the summer.
“Barcelona were pursuing both at the same time so you would figure that they figured in their plans.
“Atletico Madrid and Griezmann, ther are also other options in terms of whether Griezmann goes to Barcelona, does Atleti want Dembele.
“I think that is more likely, so I will put this down as a miss.”