The midfielder is currently on loan at the German club and Arsenal are prepared to let him leave permanently for a fee of around 27 million pounds.
According to reports, the midfielder has snubbed the chance to join the German side permanently because he believes the club is too small for him and he wants to join a team that can offer him Europa League football.
The 21-year-old midfielder fell down the pecking order at Arsenal because of his attitude problems and it seems that the midfielder has not learnt his lesson yet.
His arrogance cost him his place in the Arsenal squad this season and the loan spell with Hertha Berlin has failed to teach him humility.
It will be interesting to see if he can fight his way back into the Arsenal set up.
Although this decision to snub the German outfit might come across as ambitious, his track record suggests that it could just be his arrogance and it will be interesting to see how Mikel Arteta reacts to the situation now.
The fact that Arsenal are prepared to sell him permanently suggests that the Gunners do not want him back in their squad. Guendouzi could easily end up in a situation similar to that of Mesut Ozil if he fails to secure a permanent move away from the London club now.