Schalke 04 could be willing to agree a deal worth £30 million with Arsenal provided they are able to keep him until the end of the season, the Daily Express reports.
According to the English publication, the Bundesliga outfit could consider agreeing to such a fee if they can keep him for the remainder of the 2013/14 campaign, therefore allowing a permanent transfer to go ahead in the summer.
Such a potential proposition could presumably be appealing to Arsenal, given that it represents a reduction from the £37 million price being quoted elsewhere for the Germany international's signature.
However, with Arsenal currently possessing chronically little in the way of adequate depth in the final third behind first-choice striker Olivier Giroud, it remains to be seen if Arsene Wenger will be willing to wait until the season has finished to bring Draxler to the club.
Arsenal completed a similar deal for Draxler's compatriot, Lukas Podolski, for whom the Gunners initially agreed a deal in April of 2012 before he joined prior to the start of the following Premier League season.
20-year-old Draxler, a fine young playmaker who already has 10 senior German caps to his name, has proved a revelation for Jens Keller's side in the Bundesliga with a number of fine displays that have further highlighted his impressive attacking versatility.
Such form has seen his name become subject to much transfer speculation during the current January window, with Premier League champions Manchester United having also been credited with an interest in the player along with rivals Chelsea.
Any late Manchester United swoop for Draxler seems very unlikely, however, with David Moyes seemingly having temporarily provided a solution to their lack of creativity from attacking midfield with the £37.1 million signing that saw Juan Mata move to Old Trafford.