The German club are lining up a move to bring the American youngster back to his country of birth, where he could link up with fellow USA prospect Christian Pulisic.
Borussia Dortmund want to sign Arsenal youngster Gedion Zelalem, according to ESPN.
The 19-year-old American midfielder has struggled to establish himself in the Gunners' first team this season following a season-long loan spell at Rangers in 2015-16.
He helped the Scottish club to promotion back to the top flight but has made only two substitute appearances in the EFL Cup this term, and is being targeted by Dortmund ahead of the expiry of his contract in the summer.
Zelalem was born in Berlin and played for Hertha BSC's youth teams before emigrating to the United States with his father in 2006.
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