Guendouzi has earned rave reviews from manager Bruno Labbadia, highlighting his improving maturity in the dressing room.
“We're glad we managed to recruit him," Labbadia said. “He is a very, very good player, who has a sense of space and is very technically skilled."
But BILD says Arsenal are set to recall him this month.
The report suggests Guendouzi will either be sold permanently, or brought back into the first-team fold.
Bringing the midfielder back to north London would go against Arteta's previous mission statement for the January window, suggesting their top priority is on trimming the squad.