Draxler has a £37million buy-out clause and, although Wenger insisted on Thursday there was no imminent deal, he added: "In any hour, anything can happen."
Schalke sporting director Horst Heldt however said he was "very convinced" Draxler would remain at the Gelsenkirchen club.
Arsenal have also been linked with Montenegro international Mirko Vucinic, but his agent insists he is set to stay at Juventus.
Another Germany international, Lewis Holtby, looks set to move on loan from Tottenham to Fulham, who have also completed the loan signing of Stuttgart's Danish midfielder William Kvist.
Chelsea were on Thursday night reportedly closing in on the £12.5million signing of 19-year-old St Etienne defender Kurt Zouma, with a view to loaning him back to the Ligue 1 club for the rest of the campaign.
Newcastle boss Alan Pardew is hopeful a deadline-day swoop for Lyon midfielder Clement Grenier will prove successful as the Magpies look for a replacement for Yohan Cabaye.
Pardew said: "We have two days left and we will have to wait and see. I'm obviously hopeful."
Southampton boss Mauricio Pochettino has admitted Italy international Dani Osvaldo may be on his way out of the club.
Osvaldo is currently serving a two-week club suspension for an altercation with Jose Fonte in training and looks all-but certain to leave before Friday's transfer deadline with Juventus front-runners ahead of Inter Milan and Seville.
Pochettino said "anything is possible" when asked about a move before the transfer deadline.
West Ham have signed former Manchester City midfielder Abdul Razak on a short-term deal.
The 21-year-old Ivory Coast international came through the ranks at City and Russian side Anzhi Makhachkala signed him on a permanent deal in October.
Swansea have signed England youth international Raheem Hanley from Blackburn. The 19-year-old has signed a deal that keeps him at the Liberty Stadium until 2015.
Sunderland midfielder Alfred N'Diaye has joined Spanish club Real Betis on loan for the rest of the season.
The 23-year-old spent the first half of the season at Eskisehirspor in Turkey, but is now heading for Spain.
Sunderland boss Gus Poyet has strengthened his squad further with Argentina striker Ignacio Scocco.
The 28-year-old has joined the club from Internacional for an undisclosed fee and has signed a two-and-a-half-year deal.
QPR's Moroccan midfielder Adel Taarabt was paraded in AC Milan colours on Thursday after agreeing a loan move to the San Siro, ahead of a possible permanent move in the summer.