Arsenal had supposedly promised Ozil that the club would be challenging for the Champions League when he first joined the club in 2013, but have failed to reach the quarter-finals since his arrival in North London.
With 16 assists in the league so far this season, the German has been pivotal to the Gunners title challenge.
A source close to the club has dismissed the rumours, telling the Mirror Sport that there have been no detailed talks between the player and the club.
Details of the 27-year-old's current Arsenal contract were leaked earliere this year.
A document published on the Football Leaks website revealed Barcelona's La Liga rivals Real Madrid had negotiated a buy-back clause for their former player.
However, despite denials from inside Arsenal, the story seems to be gathering some momentum across Europe with German newspaper Bild running a story entitled 'The Barca Plan,' citing quotes from Ozil's agent admitting interest from Europe's top clubs.
"It is well known and true that Arsenal want to extend with Mesut. It is also true that there are constantly other requests for him. Mesut is a world champion, the most creative player in Europe, Germany's top player - so it is clear that top clubs show their interest in him."
In an interview with Kicker magazine in December, the former Real Madrid playmaker insisted he was happy and settled in North London.
"My contract runs until 2018, that is for another two and a half years.
"There is no need to hurry. There are no talks at the moment but I can only say that I am very happy in London and that my decision to come here from Real Madrid was the right one.
"There is not a single day, apart from when I was injured, that I have not felt great at Arsenal."
- Telegraph