Arsenal have made a £43m bid for Julian Draxler, according to the Independent.
The youngster is also a target for Manchester United according to recent reports but the Gunners have made the first official move to sign him.
He featured for Germany on Thursday night as they were beaten by France in the Euro 2016 Championship semi-final.
Wolfsburg are determined to keep hold of the midfielder, as confirmed by sporting director Klaus Allofs.
"It is clear that Wolfsburg is not the end of his dreams – neither was Schalke," Allofs told German outlet Sport Bild.
"There are clubs like Real Madrid, FC Barcelona or one or other club from England.
"But Julian knows exactly how the contractual situation is. He has a long-term contract with us. We plan to stick with it!"