Balogun spent the 2022/2023 season on loan at French Ligue 1 side Reims, where he emerged as one of the league’s highest scorers with 21 goals from 34 games. Only Jonathan David, Alexandre Lacazette and Kylian Mbappe scored more than Balogun in the French top flight last season.
The 21-year-old also spent the second half of the 2021/2022 season on loan at Middlesbrough.
Balogun has a contract with Arsenal that runs until the summer of 2025.
Should he elect to stay with Mikel Arteta’s side next season, Balogun will have to battle for a place upfront with the likes of Gabriel Jesus and Eddie Nketiah.
Balogun recently switched international allegiance to the USA and scored his first goal for his country in a 2-0 win over Canada over the weekend to claim the CONCACAF Nations League.
The former England youth international is now keen to get some stability in his fledgling career.
"I'm not sure [about] the discussions that are going to take place," he said.
"I'm not sure what's going to happen. But I'm just committed to now; I try to stay present. I obviously want to enjoy the moment with my team and my family.
"What I can say is that I definitely won't go on loan again."
Elaborating on USA's triumph, Balogun added: "It's amazing. It's a dream scenario for me."
"To be here now, the transition is amazing. I'm just overwhelmed with delight."
Balogun has been linked with the likes of AC Milan and Inter Milan.
