Report: Ozil in Arsenal transfer talks
The 24-year-old German has been at the Bernabeu since 2010 having moved from Werder Bremen.
And Ozil could be heading to the Emirates Stadium after Gareth Bale left Tottenham for the Spanish capital for a reported world record fee of £85.3m. Ozil has played more than 100 games for Real who beat off competition from Arsenal and Manchester United to sign their man following the World Cup in South Africa.
But now the Gunners are close to securing the player they wanted three years ago in a deal reportedly worth £42.5million. Manchester United and Paris Saint-Germain have also been strongly linked with Ozil in recent days.
Real Madrid coach Carlo Ancelotti confirmed on Sunday that Fabio Coentrao will be staying with the Spanish giants amid speculation of a possible move ahead of Monday's transfer deadline.
Premier League clubs Manchester United, Chelsea and Tottenham have all been linked with Portugal left back Coentrao, who has not been involved in any of Madrid's opening three Primera Division matches and was said to be keen to leave the Bernabeu.
However, Ancelotti has said the 25-year-old, who cost Madrid a reported 30million euros (£25.6m) when he joined from Benfica in 2011, has told the club he wants to continue.
"Fabio is staying. I understood that he wanted to go, but really it was not the same desire for everyone. Now he's decided to stay and everybody, the club, players and coaching staff, are happy with this decision," the Italian told reporters following Madrid's 3-1 home win over Athletic Bilbao on Sunday.