Schalke general manager Horst Heldt has confirmed that Arsenal did make an offer for Julian Draxler in the January transfer window - but says that it wasn't enough for the German club to accept.
Heldt also added that he believes the young starlet will remain in Germany beyond the end of the season.
Arsenal were heavily linked with a move for Draxler in the January window - however a deal failed to materialise.
Gunners boss Arsene Wenger insisted that rumours of Arsenal's interest in the 20-year-old, who has a release clause in his contract worth £37.2 million, were an 'illusion' - however Heldt has confirmed that the north London club did indeed make an offer.
"Arsenal officially enquired about the services of Julian Draxler during the recent transfer window. We did not want him to leave," he told told Sport1 media.
"Of course, it was big money on offer, but still it was not enough for us."
The latest batch of reports suggest that Arsenal could go back in for Draxler in the summer window - however they could be trumped by Bayern Munich, who are also interested in the winger.
Despite that Heldt believes that Draxler will still be a Schalke player for some time yet.
He explained: "I am convinced Julian will be playing at Schalke past the end of the season. We are able to offer him enough ambition."
Arsenal take on Bayern Munich in the Champions League this week, while Draxler won't be in action for Schalke against Mainz on Friday as he continues his rehabilitation from an injury he suffered back in December.