Arsenal have offered Lukas Podolski to Schalke in a bid to bring Julian Draxler to the Emirates, reports The Sun.
It has been reported that the Gunners have offered the Bundesliga outfit £20 million and the German international in a package that accumulates to £35m.
However, Schalke appear to be holding out for the player's buyout clause which currently stands at £37m.
Arsenal boss Arsene Wenger wants to bring the 20-year-old to north London in this transfer window, however will come back for the star in the summer if he misses out on the player's signature this time around.
Arsenal are still in pole position to sign the player and Gunners fans will be hoping Draxler signs in this market as the north London outfit go in search of title success this season.
The Gunners currently sit top of the Premier League table, but are just one point in front of rivals Manchester City. Arsenal's immediate attention turns to the FA Cup as they host League One outfit Coventry City on Friday evening.