The Mirror reports that the Gunners are willing to pay around £40million for the highly-rated midfielder.
Schalke are reportedly demanding a massive £60million fee for the German midfielder, who signed a new two-year contract at the end of last season.
Arsenal scouts has been watching Draxler for a while and Wenger could make a massive dip into the club’s £70million-plus transfer kitty to sign the 19-year-old.
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Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.
Newcastle United are staring down the barrel of relegation to the Championship for the second time in the past eight years.