Arsenal are set to miss out on Dynamo Dresden goalkeeper Markus Schubert.
The Daily Mail says Schubert is poised to join Schalke.
The 21-year-old goalkeeper from Dynamo Dresden had been in talks with the Gunners over joining them as cover for Bernd Leno.
Unai Emery has been in the market for a new stopper following the retirement of Petr Cech at the end of last season.
However, the Arsenal boss will have to keep looking with Schubert now set for a move to the Bundesliga.