Ozil is out of contract with Arsenal in 18 months time.
And the German international is holding out for an offer of over £250,000-a-week before signing a new deal with the Gunners.
Bayern Munich have been linked with a move for the midfielder.
Michael Ballack believes Arsenal star Mesut Ozil could be tempted by a move to Bayern Munich
And although Ozil is settled in London, former Chelsea star Ballack believes the 28-year-old could be tempted to join Bayern to win big trophies.
“Mesut Ozil is an outstanding footballer,” Ballack told German outlet Bild.
“Many clubs like him. But he knows that he enjoys a very high place at Arsenal. He lives in London, one of the most beautiful cities ever.
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Michael Ballack believes the lure of winning something big could be too good to turn down for Ozil
“To this end, Arsenal is a club that has an incredible impact on the world.
"If you are a top player in England, the cult around you is bigger than in Germany. You are treated more respectfully, especially. These are all reasons for an extension.
“But if he could win something big, the chance at Bayern is, in my opinion, bigger.”