Arthur's maternal grandmother, Madeleine Halcrow, told MailOnline that her grandson's body remains in the mortuary of Leicester Royal Infirmary, where the post-mortem was carried out 16-months ago, due to a legal dispute over who has the right to lay him to rest.
Her family want to bury him in a small quiet funeral in a churchyard in Birmingham while the Hughes family have a plot for him elsewhere and want to take charge of the service.
Ms Halcrow confirmed she had sought legal advice with a firm of solicitors and added: 'I hope that we can reach some sort of agreement with the Hughes family – for Arthur's sake.
'But for the time being it doesn't look that way and it's looking increasingly likely the matter of will be able to lay him to rest will go to court.'
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His maternal grandmother Madeleine Halcrow told MailOnline: 'Arthur was let down by social services and the West Midlands Police. There was an opportunity to save him and it wasn't taken.'
The boy's family squarely blame Solihull Council's children's services, which failed to grasp a series of chances to stop Arthur's 'unimaginable' torture before he was murdered with 130 separate injuries.
Arthur's grandmother, Joanne Hughes, told the trial how she felt there was 'no one else to go to' after repeatedly raising her concerns with the authorities, while his uncle, Daniel, was even threatened with arrest over lockdown rules if he went back to the youngster's house to check up on him.
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Arthur Labinjo-Hughes's stepmother's trial was halted for several days after she took an overdose and was rushed to hospital.
Emma Tustin, 32, swallowed several painkillers she had apparently hidden in her bra. She was taken from her cell at Coventry Crown Court last Monday afternoon and taken to hospital, where she remained until last Thursday.
A source told MailOnline: 'The case was held up for three days because Tustin was rushed to hospital after overdosing on pills. She swallowed a load of painkillers in one of the court cells during a lunch break last Monday. She'd earlier spent the morning in the dock alongside her co-accused as he gave evidence.
'She confessed to a member of her legal team about what she had done and an ambulance had to be called to take her to hospital. She was still conscious when she left the cell at Coventry Crown Court in the ambulance. It appears as though she may have been given pills by the prison over a number of days but rather than take them she'd been saving them up and hid them in her bra.'
Arthur Labinjo-Hughes' stepmother is found GUILTY | Daily Mail Online