Borussia Dortmund midfielder Ilkay Gundogan will snub the advances of Manchester United and Arsenal in favour of signing a new contract with the Bundesliga club, reports talkSPORT.
According to general manager Hans-Joachim Watzke, the 22-year-old is already in the best possible place to continue his development, and can fulfil his potential at the Westfalenstadion, rather than moving to the Premier League.
Red Devils boss David Moyes has been credited with an interest in bringing the German international to Old Trafford, as he continues his search for midfield reinforcements before the close of the transfer window.
Arsene Wenger is also believed to be monitoring Gundogan's situation, as he weighs up a rival bid to lure the player to the Emirates Stadium.
Arsenal are yet to spend any money so far this summer, with Yaya Sanogo the only new face in north London, after arriving from Auxerre on a free transfer.
Signing Gundogan would appease those Gunners supporters growing increasingly frustrated at the club's transfer policy, which has resulted in Wenger missing out on a number of proposed targets.
The Borussia Dortmund star is under contract with Jurgen Klopp's side until 2015, and Watzke is confident that reported interest from Manchester United and Arsenal will have no impact on Gundogan penning a new deal.
"I really think he will stay with us after 2015," he told German newspaper Bild. "This is the right club for him at this stage of his career."