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.
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.