Ilkay Gundogan could leave Manchester City on a free transfer this summer (AMA/Getty)

Arsenal remain in the race to sign Ilkay Gundogan this summer but Borussia Dortmund have withdrawn their interest in the midfielder, according to reports in Germany.

The Manchester City midfielder is out of contract at the end of the month and is yet to reach an agreement over a new deal with Pep Guardiola’s side.

Arsenal are looking to capitalise as they have submitted an offer to sign Gundogan as a free agent, however, the Premier League runners-up face strong competition from Barcelona, who have held extensive talks with the 32-year-old’s agent and have submitted a rival proposal.

Dortmund were also in the running to sign Gundogan but according to Bild, the midfielder has informed his former club that he is not interested in returning this summer.

The report claims that Dortmund have pulled out of the race, while Gundogan is giving serious consideration to Arsenal and Barcelona, as well as the prospect of extending his stay at Manchester City.

Ilkay Gundogan has received offers from Arsenal and Barcelona (AFP via Getty)

It’s understood that Gundogan has also rejected an offer to join the Saudi Pro League.

Meanwhile, reports in Spain claim that Gundogan’s agent wants Barcelona to provide a guarantee that the midfielder can be registered with La Liga for the new season.

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Barca were warned by La Liga’s president, Javier Tebas, earlier this year that they would be unable to sign new players until they reduced their wage bill.

Lionel Messi also accused Barcelona of failing to provide him with a concrete offer to return this summer, which paved the way for his move to Inter Miami.

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Gundogan is giving serious consideration to three offers.