The daily newspaper states that the Gunners are ready to offer Özil a four-year deal keeping him at the north London based club until at least 2019.
Özil was signed from Real Madrid for a club record £42million back in August 2013.
The Germany international has hit a rich vein of form which includes goals against Manchester United and Bayern Munich as well as providing assists in six consecutive Premier League games.
Özil currently has the most assists in the top five European leagues – England, France, Germany, Italy and Spain.
The World Cup winner has provided 10 assists in 11 league games for the Gunners this season and has two goals in all competitions.
Özil has provided assists in six consecutive games which is a Premier League record and has created the highest number of chances in the current Arsenal team.