Arsenal are set to lose out in their pursuit of Julian Draxler with the midfielder set to join French club Paris Saint Germain.

A report in the Daily Mail suggests that the Wolfsburg midfielder, who has been a long-term target for the Gunners has agreed a four-and-a-half year deal with the Ligue 1 outfit with the fee the only stumbling block at the moment. Draxler is expected to leave the club in January, but only if clubs match the asking price which is expected to be around £34m ($42m).

The 23-year-old midfielder has been getting booed by Wolfsburg fans after he came out in the summer and expressed his desire to leave the club and reiterated his stance earlier in the year after the start of the new campaign. Arsenal have been frontrunners for his signature, with Mesut Ozil reportedly said to have urged the Arsene Wenger to sign him, but PSG are said to have stolen a march by agreeing a deal with the midfielder.

"I don't think I need to tell anybody what [being booed] does to a person – it certainly doesn't help you," Draxler said following the fans' harsh reaction, as quoted by the Daily Mail.

"There's no doubt it makes it hard for you to perform on the field. I can understand the fans, though. They have every right to do that.

"I said in the summer the way I feel and I stand by that," the Germany international midfielder added.

Draxler has not been at his best thus far this campaign with just two assists and no goals in 14 appearances in all competitions. But the German is highly rated across Europe and will provide an added attacking avenue for whichever club he joins.

PSG, who are struggling in Ligue 1 this season under Unai Emery – seven points of leaders Nice – are said to be favourites to land him once the fee is agreed between the two clubs.