Ilkay Gundogan
Ilkay Gundogan is being targeted by Arsenal for a January moveGetty

Arsenal are preparing a January move for Borussia Dortmund midfielder Ilkay Gundogan, according to the Daily Mirror.

The German international has been handed an ultimatum on his contract situation, which expires in 2016. Failure to sign a contract will force Dortmund to put him up for sale in the summer, with the club already sounding out to potential candidates in January.

Arsene Wenger is a huge fan of the player, who can be available for as low as £16m, and reduce their problems in the midfield. Gundogan will be an ideal replacement for Mikel Arteta.

The German media believes that Gundogan has his mind set on moving to the Premier League and is unwilling to sign a new contract. However, the only worry surrounding the transfer is his past history of injuries, due to which he was on the bench for over a year.

The player is marred by a chronic back problem, something which Wenger and his team have to analyse before committing on bringing the player to north London.

Gundogan will be an ideal fit at Arsenal, who need a good passer in the midfield. His ability to dictate play was displayed en route to the 2013 Champions League final, where his presence of mind and composure, helped him secure a spot in the German national team.

The Gunners are likely to face competition from Manchester United, who have previously expressed their interest in the player.

Arsenal are in the market to sign a holding midfielder and a defender in January and have been linked to Morgan Schneiderlin of Southampton and William Carvalho from Sporting Lisbon.

However, Wenger will be more than willing to spend the cash on Gundogan if given a choice, having watched him extensively during his rise with Dortmund before his injury setback.

The Gunners are currently short in the midfield, but have been handed a boost by the possible return of Mesut Ozil, Aaron Ramsey and Mathieu Flamini in the clash against Stoke City on Sunday.