Marc-Andre ter Stegen's agent has confirmed that the goalkeeper is in talks to extend his contract with Borussia Monchengladbach.
The 21-year-old was reportedly close to agreeing a deal to move to Barcelona but the Bundesliga outfit denied any deal was in place.
Stegen is widely regarded as one of the best young goalkeepers in Europe and Arsenal are also thought to be keen to bring him to the Emirates.
Arsenal currently have Wojciech Szczesny in between the sticks but Arsene Wenger is reportedly keen to keep his options open as the long-term viability of the Polish stopper has been called in to question.
Szczesny was dropped last season after a run of poor form, but he has since returned to his best this season.
Barcelona, on the other hand, are looking for a replacement for Victor Valdes, who is set to leave the Nou Camp when his contract expires next months.
However, Stegen's agent Gerd Vom Bruch has confirmed that although several top clubs are interested in his players' services, he is only talking about renewing his contract with the club.
He is quoted in Marca as saying: "Borussia already knows that there are two or three big clubs interested in him.
"Right now we are talking with the club about extending his contract."