Despite a month-long chase for German starlet Draxler, it seems the Schalke youngster will be staying in Germany after Wenger was unwilling to fork out around £40m to clinch his signature.
The Gunners may still make moves in the transfer market with Kim Kallstrom of Spartak Moscow and Barcelona's Cristian Tello linked with moves to the Emirates Stadium today, and Wenger admitting the club are '80% likely' to sign a player before the transfer window closes.
Kallstrom would be brought in to help with Arsenal's midfield crisis, whilst Tello could bring an injection of pace in Theo Walcott's absence, but with Wenger's strong links with French football, will he make a late swoop for Lyon's Clement Grenier ?
Arsenal were reportedly interested in signing the 23-year-old at the start of this month, but Newcastle have been pushing hard to sign Grenier to replace Yohan Cabaye, who left the North East for a return to France with Paris Saint-Germain earlier this week. But it seems that the player has turned down the switch to St. James Park because he doesn't want to be considered as Cabaye's replacement.
'It is not easy to say no to a big club like Newcastle, but Clement is finally decided to stay in Lyon', said Grenier's agent . 'Clement would have arrived at Newcastle not as Clement Grenier - but as Yohan Cabaye's replacement'.
An £11m fee has been mooted for the France international, and with the Draxler deal now off, Wenger could do a lot worse than add Grenier to his Arsenal squad. Capable of playing across the midfield, Grenier would be a valuable squad member as Arsenal chase their first silverware since 2005.
With Newcastle seemingly out of the picture, Grenier could still be open to a move away from the Stade Gerland and, with a midfield crisis at the Emirates Stadium, the Frenchman could end up being a smart signing.
image: © Ronnie Macdonald