The German club's director of football Alexander Rosen is adamant Nagelsmann will stay put.
"Julian Nagelsmann will be our coach next season. 100 per cent," Rosen told Sky Sports.
Gunners' chief executive Ivan Gazidis is reportedly planning to hire a head coach who would work along the head of recruitment Sven Mislintat.
The north London club are expected to take their time on the decision, but still make it before the World Cup commences.