The 21-year-old has rejected an offer of a new contract at Werder Bremen and is not prepared to hold further talks over an extension until the end of the season.
Ozil has just a year left on his current contract with Werder Bremen and the Bundesliga side could be tempted to cash in on the playmaker.
Arsenal boss Arsene Wenger may expect to face competition from Juventus, Real Madrid and Barcelona for the youngster.
