The 24-year-old German winger has been a long-time target for Arsenal manager Arsene Wenger with the Ligue Un leaders demanding £40m for the German international.
According to the Mirror, the Gunners will fund the deal by selling Alexis Sanchez, 28, for £35m this winter. Manchester City lead the pursuit, but PSG are also keen admirers. However, a swap deal for the pair has already been ruled out.
City are waiting until the end of the season before moving for Sanchez which opens a window of opportunity for PSG if they want to steal the Chilean from under their noses. Bookmakers aren’t confident the deal will happen, offering 12/1 on Alexis joining PSG in January.
Sanchez is not cup-tied for the Champions League, making him an attractive proposition for January’s transfer window.
Draxler moved to Paris in a shock move from Wolfsburg last year but with PSG under investigation by UEFA for breach of Financial Fair Play regulations, the French club must sell several members of their squad to ensure they stay within the strictly applied guidelines.
AC Milan tried to broker a deal with UEFA to avoid punishment for FFP transgressions but failed, leaving PSG under no illusions that harsh penalties may be imposed as this is not their first offence.
Arsenal are in a position of strength to sign Draxler with Manchester United looking to bring Malcom, Bordeaux’s 20-year-old striker, to Old Trafford.