The Gunners midfielder has not made much of an impact this season and is no longer an automatic first choice under new manager Unai Emery.
With Arsenal bringing in Denis Suarez close to the end of the window and the likes of Alexandre Lacazette and Pierre-Emerick Aubameyang key men for the North London club, it remains to be seen what role Ozil will play at the Emirates Stadium in the near future.
The report suggests that PSG wanted to take the World Cup winner to the French capital as cover for injured star Neymar, but the German midfielder has turned the opportunity down.
Arsenal fans have seen the best and worst of Ozil in his time at the English club.
When the Gunners are on a role, the Germany international can be a devastating playmaker and a creator of exceptional goals.
However, Ozil has been seen by many as a luxury player and as such his limited impact and lack of defensive initiative in big games has been highlighted.
Emery wants his Arsenal side to press their opponents from the front, in a tactic that clearly does not suit the style of the languid attacker.
Ozil penned a lucrative long-term contract with the Gunners before Arsene Wenger left the club and as such it will be difficult to find a potential suitor that could meet his wage demands.