The details regarding the buy-back clause has been released by whistle-blowing website Football Leaks (via Goal).
The report states that if Arsenal accept a bid from any club for Ozil, they would then need to inform Real Madrid of the terms of the deal and afford them 48 hours to match or better the offer.
The 27-year-old has two years remaining on his contact with the North London based club.
Arsenal missed out on topping the Premier League table after suffering a 1-0 loss against Chelsea in the London derby yesterday.
Mesut Ozil’s 100th game for the north London based club ended in a disappointing defeat. Arsenal have now slipped down to third place and are just two points ahead of their bitter rivals Tottenham.