The 28-year-old is now into the last 12 months of his existing contract and has been in discussions with the Gunners over a new deal for the best part of the last year.
The major sticking point between the two sides has been wages, with the German thought to have been seeking at least double his current weekly pay of £140,000.
Arsenal have held firm in the discussions and manager Arsene Wenger has made it clear that he is prepared to let Ozil and fellow contract rebel Alexis Sanchez run down their contracts and leave for free next summer.
According to The Sun, Ozil's representatives have been looking at potential new clubs for the player around Europe but have failed to receive much interest, leading Arsenal to believe that their most recent offer of £225,000 a week will now be accepted.
Ozil missed last weekend's Community Shield win over Chelsea with injury but has now returned to training and is in line to feature for his side in the Premier League opener against Leicester City on Friday night.