Arsenal target Markus Schubert is poised to join Schalke.
The 21-year-old goalkeeper from Dynamo Dresden had been in talks with the Gunners over joining them as cover for Bernd Leno.
Unai Emery has been in the market for a new stopper following the retirement of Petr Cech at the end of last season.
Arsenal target and Dynamo Dresden goalkeeper Markus Schubert is poised to join Schalke
However, the Arsenal boss will have to keep looking with Schubert now set for a move to the Bundesliga.
The 21-year-old is expected to provide back-up and competition for Schalke keeper Alexander Nubel, who is himself drawing interest from Bayern Munich.
The German believes there could be an opening for the No 1 spot at Schalke in the not too distant future, a path that is blocked by Leno at the Emirates.
The 21-year-old had been in talks with the Gunners over joining them as cover for Bernd Leno