Schalke star Julian Draxler
Draxler had admitted earlier in the summer he could be tempted by a move abroad, with several key English clubs registering their interest early on.
Both the Blues and the Gunners were undeterred by The 19-year-old attacking midfielder signing a new deal at Bundesliga side, tying him to the club until 2018.
And according to reports in Switzerland Chelsea manager José Mourinho will return in January for the 20-year-old.
Schalke are thought to be determined to hold onto Draxler until at least June, but a £25m bid could change their minds.
“Julian Draxler is a transfer target for both Arsenal and Chelsea”
The former Real Madrid boss is thought to be keen to add the attacking midfielder to his squad, who is incredibly highly-rated in Germany - judging by his regular inclusion in the national squad.
Draxler hit the headlines in Germany last night, after scoring a stunning goal to earn Schalke a 1-0 victory at Basel in the Champions League - after the game was briefly interrupted by a Greenpeace protest.
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