Shkodran Mustafi's agent says the Arsenal are in talks over signing the Valencia defender but that no agreement has yet been reached between the Gunners and either the Spanish club or the Germany defender
Ali Bulut was quoted by Spox on Thursday as saying that Mustafi, 24, had already agreed personal terms for a move to the Emirates Stadium and that a deal is close.
However, the 2014 World Cup winner's agent later moved to clarify the position, telling kicker: "There are talks, but there is no agreement -- neither between Arsenal and Mustafi nor between Valencia and Arsenal."
The Times had reported that Arsenal were looking to strike a deal for around £20 million for Mustafi, while Sky Sports said he could end up costing £30m.
Arsenal are in dire need of a centre-back after seeing Per Mertesacker and Gabriel Paulista suffer long-term injuries during preseason.
However, Wenger has said he does not expect to bring in a new defender in time for to play in Sunday's Premier League opener against Liverpool.
That would leave Arsene Wenger with 21-year-old Calum Chambers and newly signed 20-year-old Rob Holding as his only recognised senior centre-backs in the squad.
Mustafi, who helped Germany win triumph in Brazil two years ago and also played for his country at Euro 2016, would give Wenger a more experienced option to partner to Laurent Koscielny, who is short of match fitness for the Liverpool game.