General manager Klaus Allofs insists Per Mertesacker could still sign a new deal at Werder Bremen, despite reports linking him with Arsenal.
The Gunners were reportedly chasing Germany international Mertesacker's signature in January, but a deal for the defender fell through.
Speculation on Sunday suggested the Gunners have renewed their interest in the centre-back, who is out of contract in Bremen next summer.
But Allofs is adamant the 26-year-old, who is currently sidelined with a heel injury sustained in May, could pen a new contract with the Bundesliga club.
"The chance of Per Mertesacker remaining with us is still alive," He told Deutsche Presseagentur.
"We have just dropped talks of a new deal for now. It's not off the cards. We have a season to go and we could easily start to discuss it during the new campaign."
Experienced stopper Mertesacker arrived at the Weserstadion from Bundesliga rivals Hannover in 2006 and has since notched up over 140 appearances for the side.
The German, capped 75 times for his country, could be the solution to Arsenal boss Arsene Wenger's defensive issues as he looks to bolster his backline this summer.
The Gunners have also been strongly linked with Bolton's Gary Cahill, while Blackburn stopper Chris Samba is thought to be another target.