Goal exclusively revealed that the Gunners were lining up a bid for the Germany international back in January, with Draxler himself confirming that Schalke blocked a potential switch to Emirates Stadium.
The 20-year-old has long been tracked by Arsene Wenger's side and, following reports that he is again being lined up as a potential summer target, Draxler insists he wants to stay put for one further year.
He said, as quoted by BBC Sport: "In January there was an offer from Arsenal but I decided to stay.
"I will do same this summer. I want one more year with Schalke."
Draxler struck two goals in 26 Bundesliga games last season and was an unused substitute as Germany kicked off their World Cup campaign in style with a 4-0 victory over Portugal on Monday.