The highly-rated 19-year-old striker only signed a new long-term contract in April but is still behind Pierre Emerick-Aubameyang, Alexandre Lacazette and Eddie Nketiah in the pecking order.
Balogun is yet to play in the Premier League since the opening two games of the campaign.
“I feel like I am ready for a new challenge,” Balogun, who has played youth football for both the USA and England said.
“I feel like I have played youth football for a while. I have scored goals at that level and improved at that level drastically compared to now. At the same time I am not sure what that challenge might be.
“It might be a loan, or if I am needed at Arsenal I am here and the gaffer knows that as well.
“I feel like I am definitely open to a new challenge, wherever it is I will be ready.
“As a striker and as a young player you need minutes. It is the best way to learn and get consistency.”
Despite craving for more first team opportunities, Balogun says he has been adviced to stay patient by fellow Arsenal academy graduates Bukayo Saka and Emile Smith Rowe.
“It is funny because this time last year Emile was playing U23 football so it shows how quickly things can change around in football,” he added.
“I speak to Emile and Bukayo a lot. They tell me to be patient. They tell me it is not an overnight thing, which it hasn’t been for them. It would be naive for me to think that.
“You just have to keep practicing, then you see the rewards and when you are ready you will take the opportunity.
“I know I am not at the level I want to be, but I know the performances I am putting in. I know I am going in the right direction.”
