Schalke 04 are set to lose another key young player for next season amidst reports on Tuesday that Max Meyer has turned down a lucrative contract extension. Meyer, a 22-year-old midfield dynamo who was linked to Arsenal in January, has so far refused a reported new salary offer of 5.5 million euros ($6.7m) a year.

"At the moment, we're still ready to talk, but we have to plan for the new season," Schalke's director of sport Christian Heidel told Kicker magazine.

Germany midfielder Leon Goretzka, 23, has already said he is joining Bayern Munich next season while Meyer is out of contract with Schalke in June. Some reports suggested he wants to stay in Germany and fight for a place at Bayern alongside Goretzka.

Schalke are currently third in Germany's top flight behind runaway leaders Munich. Under Schalke's coach Domenico Tedesco, Meyer has shone in an encouraging season after struggling last year under Markus Weinzierl.

Meyer, a robust defensive midfielder who is skilful on the ball and has quick feet, has also been linked to Spanish giants Barcelona.He captained Germany to the silver medal at the 2016 Olympic Games, losing to Brazil on penalties in the final in Rio de Janeiro. 

Schalke are on course for a Champions League berth next season, but with Goretzka already leaving, Meyer's departure would be another significant loss.

The Bundesliga club is putting Meyer under pressure to commit one way or the other. "Domenico Tedesco has formed the team around him so that Max Meyer is now in an ideal position," Heidel told magazine Sport Bild. "That wasn't the case before. He has to think, regardless of the economic aspect, 'would I be in this position at another club?'"