Sporting Director Horst Heldt also confirmed that Schalke received no offer from Champions League winners Bayern Munich for the 20-year-old.
44-year-old Heldt said the Bundesliga outfit are in no rush to sell one of their most prized assets, although they are believed to have set an asking price of €44.5 million.
In a conversation with German television SPORT1, Heldt suggested the onus is on Arsenal to meet the asking price if they wish to complete a deal at the end of the season.
“It was a lot of money, but it wasn’t enough for us,” Heldt told SPORT1, regarding Arsenal’s offer.
Asked whether Bayern had made an offer, Heldt said: “No, definitely not.”
The Gunners have come under fire for their failure to sign Draxler or any further reinforcements during the January transfer window, with Arsene Wenger’s side still considered to be very much in the title race.
Now it appears they will have to pay the required €44.5 million if they wish to sign Draxler in the summer.