Wolfsburg are ready to offer Arsenal target Maximilian Arnold a new contract, in a bid to ward off interest in the player's signature, reports the Daily Mail.
The 19-year-old midfielder has been in impressive form, scoring six goals in 14 matches for the Bundesliga side this season.
Gunners boss Arsene Wenger has been credited with an interest in bringing Arnold to the Emirates Stadium, and was ready to meet his £8million buy-out clause when the transfer window reopens this summer.
However, Wolfsburg manager Dieter Hecking is eager to keep the talented teenager at the Volkswagen Arena, and will open negotiations with the player's agent, in an attempt to extend his stay beyond 2015.
Arnold would join a growing contingent of German players in north London were he to sign for Arsenal, with the likes of Per Mertesacker, Lukas Podolski and Mesut Ozil already established first-team stars.
However, it now looks as though the Premier League title hopefuls face an uphill struggle to secure the Germany U21 international's services, with a new deal on the table at Wolfsburg for the exciting young prospect.