The Gunners have been heavily linked with the German starlet for a number of months, but their interest in his services has spiked in recent weeks following a series of injuries.
Arsene Wenger is anxious that the absence of some of his star names may derail the Londoners’ push for the title, and he is said to be keen to remedy the situation with a massive move for Draxler.
The Bundesliga giants have always remained adamant that their 20-year-old ace is not for sale, but their stance is believed to have altered in the last few days after the player himself indicated that he is ready to leave.
Draxler is said to be happy to join Arsenal before the end of the month, with the prospect of a big move to good to pass up.
However, his valuation may be stumbling block.
Schalke are believed to be demanding around £35m-£40m for their man, but Wenger is not happy to pay such a sum after concluding a club record swoop for Mesut Ozil during the last window.
A possible swap deal including Lukas Podolski has been mooted, but a significant cash payment is also likely to be required.