Ilkay Gundogan
Ilkay Gundogan (R) has been linked with Manchester United and Arsenal Getty

Borussia Dortmund sporting director Michael Zorc has confirmed the club are ready to cash in with IIkay Gundogan this summer after the player decided against renewing his contract at the Bundesliga giants.

With the German's deal at the Westfalenstadion set to expire in the summer of 2016, the Bundesliga giants have the dilemma of selling him now or losing him on a free when his contract ends, like they did with former player Robert Lewandoski, who is now at Bayern Munich.

Arsenal and Manchester United are reportedly monitoring the situation and considering a bid to secure his services.

Gunners boss Arsene Wenger is said to be in the market for a midfielder amid the uncertain future of Mikel Arteta, who will be out of contract.

Meanwhile, United manager Louis Van Gaal confirmed on 8 May that he is searching for an alternative to Michael Carrick after the midfielder was ruled out for the remainder of the season due to injury.

"It's clear that Carrick is very important but that's also because we have only one right-sided holding midfielder. That's what I am saying already in the whole of the season, that our selection is not balanced, and I want to restore that in the next transfer period," Van Gaal said.

"The life is not ending at 34, but for a professional football player, it's close by. That's why I have to handle again in that position."

And the Premier League giants have now received a huge boost after Zorc revealed they are likely to let Gundogan go for a reasonable fee.

"Our negotiations with the player came to the conclusion that he is not going to extend his contract and so he will leave this summer," Zord said to Sport-Bild. "But this also will depend on what offers we have on the table. Until now we have not received any offer."

Earlier in May, Gundogan claimed his decision not to renew the contract will not equate to his summer departure, although he admitted the possibility of leaving the club should Dortmund get decent compensation.

"If I don't renew my contract that doesn't mean I won't stay until 2016. I'm not hell-bent on leaving by force and would be prepared to stay for another year if that suited both sides," Gundogan said.

"If not then it is important that my current club gets an appropriate compensation, that's one of the reasons I extended my contract by one year last season.

Meanwhile, asked about the rumours about United and Barcelona, he responded: "United? I think if they were true, I would know about it. Barcelona are a great club, but there are many great clubs out there."