Draxler stays, Dortmund strengthen
The German transfer window shut at 6pm (local time) on Friday, but regulations stipulate that players may move abroad before the day ends.
The 20-year-old Draxler - who has already made 133 appearances for Schalke in all competitions in his short career - has been the subject of repeated Arsenal interest throughout the January transfer window.
Arsenal reportedly sent chief transfer negotiator Dick Law to Germany in an attempt to thrash out a deal, but the discussions fizzled out in the latter stages of the month, and any deal looks unlikely now.
While champions Bayern Munich were quiet on deadline day, last season's runners-up Dortmund strengthened their squad with the signing of Serbia international Jojic.
Attacking midfielder Jojic has signed a four-and-a-half deal at Dortmund, who paid Partizan Belgrade a fee reported to be in the region of €2.5 million.
The 21-year-old will give Dortmund depth in an area harmed by the loss of Jakub Blaszczykowski, who will not play again this season due to a knee injury.
"We're very happy with the signing of Milos Jojic. He is a player who is very versatile in midfield and who has a lot of potential. He completes our squad," Dortmund sporting director Michael Zorc said.
Jojic will not feature in Friday's match against Eintracht Braunschweig.
Relegation-threatened Nuremberg boosted their options with the signing of Spanish midfielder Jose Campana from Premier League outfit Crystal Palace.
Campana, who only joined Palace from Sevilla in July last year, has signed a six-month loan deal that includes the option for the arrangement to be made permanent.
Nuremberg sporting director Martin Bader said: "We regularly kept an eye on Jose Campana, especially when he featured for the Spanish national team's youth sides.
"He can play in a variety of midfield positions."
Werder Bremen and Stuttgart also did business on the final day of the window, with the former signing Poland midfielder Ludovic Obraniak from Bordeaux on a two-and-a-half year deal.
Stuttgart welcomed Ecuador Under-20 international Carlos Gruezo, who joined from Barcelona Sporting Club in his home country.
But the club also revealed that contract talks with Guinea midfielder Ibrahima Traore had broken down, and that he would leave at the season's end.
Other deals saw Croatian striker Srdjan Lakic leave Eintracht Frankfurt for second-tier Kaiserslautern while defender Matthieu Delpierre moved from Hoffenheim to FC Utrecht in the Eredivisie.