Werder Bremen midfielder Mesut Ozil has denied reports he has signed a new contract.

With Arsenal and Manchester City circling, the Germany international is locked in talks with Bremen about an extension to his deal, which is due to expire in 2011, but insists an agreement has not yet been reached.

"It's in the papers, but it is not correct," Ozil said.

"We are still holding negotiations and we will just have to see what emerges from them."