The 21-year-old winger will now require only £21m in a bid, which puts Arsenal in prime position to make one last signing before the transfer window closes.
The reduced price is rumoured to be because of Draxler’s injury history, and he most recently suffered a thigh injury.
The Gunners have been hoping to upgrade their attack with targets such as Real Madrid’s Karim Benzema and Paris Saint-Germain’s Edinson Cavani.
However, both of those players would be considerably more expensive as they command close to £50m while Draxler offers youth and value.
The German international is still looking to rediscover his old scoring form, as he scored 10 goals in 30 appearances for Schalke in the 2012-13 season.
Arsenal struck gold last summer when they looked for a scoring addition, as they signed forward Alexis Sanchez.
It remains to be seen whether they can convince Draxler to spurn Juventus, who are also pursuing the young winger.