The Daily Mail reports that Wenger is ready to spend much of his £50million transfer fund on the 19-year-old.
Arsenal’s chief scout Steve Rowley watched Goetze in action in Borussia Dortmund’s Champions League win over Olympiakos on Tuesday.
Wenger is reportedly ready to smash the Gunners’ transfer record of £15million, that they paid to Zenit St Petersburg for Andrey Arshavin.
Borussia Dortmund are reportedly looking for around £20million for the youngster.