Arsenal made an enquiry about the Germany international over the summer as they looked to bolster their options on the left of attack following the departures of Leandro Trossard and Gabriel Martinelli, but were given a firm answer from west London that Schade was not for sale.
Rather than entertain a deal, Brentford have instead moved to secure his long-term future, opening discussions with his representatives over fresh terms despite his current contract not expiring until 2028.
The proposed new deal is expected to include a significant increase in salary for the 24-year-old, who has established himself as one of the Premier League's most effective inverted wingers since arriving from Freiburg in 2023 for a fee of around €25m. The move follows a pattern already set by the club this year, with both Thiago and Michael Kayode handed lengthy contract extensions as Brentford look to build stability around the core of Keith Andrews' squad rather than risk losing key performers for below their true value.
Schade's value has risen sharply since his arrival in England, with reports earlier in the year suggesting Brentford would demand a fee in excess of £50m, and potentially as much as £70m, were they ever to consider a sale. That stance was reflected in their swift rejection of Arsenal's approach, with the north London club reportedly not pushing the matter further once it became clear a deal was off the table.
Tottenham had also previously been credited with interest in the winger, given his familiarity with Thomas Frank from their time together at Brentford before the Dane's move to north London.
Brentford's determination to tie down Schade underlines the growing esteem in which he is held within the game, with his directness and ability to attack inside from wide positions making him one of the division's most dangerous attacking outlets when in form.
Securing his signature on an improved contract would represent a significant statement of intent from a club that has built its recent success on developing and retaining talented individuals for as long as possible before any eventual sale.