Dynamo Dresden goalkeeper Markus Schubert has turned down an offer from Arsenal.
Sport1 says Schubert, off contract from tomorrow, has held several rounds of talks with the Gunners about a move to London.
However, the keeper would prefer to remain in Germany.
As such, Schalke management are now closing on an agreement with Schubert.
At the moment, the youngster is with Germany for the U21 Euros.