Schalke's general manger Horst Heldt insists Arsenal have not made a move for Klaas-Jan Huntelaar and says rumours of an exit are 'fairytales'.
Arsene Wenger believes the Dutchman can help ignite his side's faltering season and he can get him on the cheap in January.
The former AC Milan and Real Madrid striker's contract expires at the end of the season and he is unlikely to sign a new deal, despite Schalke desperately trying to get him to change his mind.
And while Arsenal are keen, defiant Heldt told Kicker: "(Huntelaar leaving) is just a rumour and a fairytale. There is no truth to the rumours linking with him with Arsenal."
Despite Heldt's claims, it is understood that Wenger will test the waters with a £6m bid next month.