The Bundesliga giants have been reluctant to let go of their star man whose contract comes to an end in 2016 and offered a contract extension until 2019 worth €6.5 million per-season.
However, Dortmund are now looking to sell Gündoğan this summer rather that let him go on a free in 2016.
The club confirmed the news on their official Facebook page. The statement reads, “Bundesliga side Borussia Dortmund will part company with midfielder Ilkay Gündogan by 30 June 2016 at the latest.
“Gündogan has decided not to renew his contract with the eight-time German champions which is due to expire on that date.”
Both Arsenal and Manchester United have maintained an interest inGündoğan over the past year while the Bundesliga Champions Bayern Munich are also understood to be weighing up a €30 million move for the 24-year-old.
Gündoğan has four assists and three goals in 28 appearances for Dortmund this season.