The Germany international has admitted that negotiations are progressing, which would be a blow to the midfielder’s suitors.
The Gunners have had injury concerns in the heart of their side, with the likes of Mikel Arteta, Jack Wilshere and Aaron Ramsey all spending considerable time on the sidelines this term – hence the link to Gundogan.
However, the Germany international has revealed that negotiations over a new contract at Signal Iduna Park have begun and that he could well be set to extend his stay with the Bundesliga club.
“Things are going well, but I’d prefer not to say anything,” the technically gifted playmaker stated when quizzed by Bild over contract talks.
Dortmund have suffered a dreadful domestic campaign in 2014-15, but were recently boosted by star player Marco Reus signing a new contract with Jurgen Klopp’s men that did not include a release clause.
Gundogan has been injury prone over the last 18 months but has started to get back to his best after regaining fitness.
The 24-year-old has started 11 Bundesliga games this season and played the full 90 minutes against Juventus in last night’s 2-1 defeat in Turin for the German side.