Ozil is out of contract in June 2018 and has, together with star striker Alexis Sanchez, been linked with a move away from north London amid the Gunners' continual failure to challenge for major trophies.
Missing out on Champions League qualification could yet see the playmaker seek to leave Emirates Stadium in the off-season.
But it remains to be seen if any potential suitors can match Ozil's ambition and wage demands.
"A player like him, who has played for Real Madrid and now Arsenal and who knows the Premier League and La Liga, he has his own feeling and experience," former Bayern Munich, Chelsea and Germany star Ballack told Sky Sports.
"And there are not many clubs where he can go now and who can afford him. I think he needs to feel comfortable with the decision that he makes.
"But it also depends on what Arsene Wenger does and they have a good relationship and maybe that is why he is waiting a bit," he added, referring to Arsenal's French manager, who is out of contract at the end of the campaign and yet to reveal whether or not he will extend his deal.