The German has fallen out of favour with Unai Emery, who on Wednesday refused to confirm Ozil has a future at the club, and The Independent has been told they will be open to offers.
Ozil's huge £300,000-a-week contract will make him hugely difficult to offload, but some club figures feel a solution may be possible with Isco. Real Madrid are targeting a major squad overhaul in the summer and issues with the Spanish playmaker - not least his fitness being questioned - mean the European champions are now willing to sell him to fund their plans.
Ozil is also a popular figure at the Bernabeu after a successful spell there between 2010 and 2013, although there would now be considerable differences in valuation. Madrid would want around £100m for Isco, meaning any deal for Ozil would also involve a considerable fee from Arsenal.
The north London club would also face heavy competition from Chelsea, Tottenham Hotspur and maybe even Manchester City for the Spain international.
Ozil was left out of Emery’s matchday squad that suffered a 2-0 defeat against Spurs in midweek in their Carabao Cup quarter-final, and faces a hugely uncertain future at the Emirates after the manager explained it was purely a “tactical decision” as the German didn’t fit into his plans.
“My focus is analysing this match and Saturday,” Emery said this week.
“It was a tactical decision because I thought the players today with us was for us the best for this match,” he also stated.
“I am thinking the match on Saturday and not thinking another situation. Every player they are important, and one I decided they didn’t play. Only a tactical decision.”
Arsenal’s transfer funds are however expected to be limited in January, which could restrict Emery from changing his squad until the summer.
Join our new commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies