Arsenal are ready to move to Julian Draxler with Schalke looking to sign his replacement.
The German side are understood to be targeting Inter Milan star Xherdan Shaqiri but need to free up funds to sign him.
And, reports say Arsenal are looking to swoop for Draxler.
The 21-year-old has been hampered with injuries over recent seasons and is said to be willing to make a fresh start with a new club.
Arsenal duo Yaya Sanogo and Carl Jenkinson are set to leave the club on loan.
As the Daily Mail report, 22-year-old French striker Sanogo is in discussions with Ajax over a season-long deal.
And, 23-year-old defender Jenkinson will rejoin West Ham on loan again next season after agreeing a new five-year deal with the Gunners, according to the Telegraph.
Arsene Wenger expects Mesut Ozil to have a big season next term after ruling out letting the Germany international leave.
"Ozil is our player, he will remain our player and he wants to remain our player," Wenger said.
"It is a big season for him because he had a difficult start last year and in the second part of the season he was very important.
"There are many offensive players who have an important season in front of them but I’m confident because I think they have the quality."
