Ozil, 29, won the World Cup with Germany four years ago, but was also part of Joachim Low's squad which failed to progress from the group stages of the 2018 tournament in Russian Federation. "That is not why I play football, and I will not sit back and do nothing about it. Racism should never, ever be accepted".
Cem Ozdemir of the Greens party also voiced dismay that "young German-Turks now get the impression that they have no place in the German national team".
He said he spoke to Ozil on Monday night and described his approach as "beyond any form of admiration", adding that Ozil's critics "could not stomach" the photograph of the football star and Erdogan that prompted criticism ahead of the World Cup. Not because of some picture, of of political decision.
The report further revealed that Iwobi who was in Nigeria's squad to the 2018 Federation Internationale de Football Association world Cup in Russia is not in new Arsenal manager Unai Emery's plans going into the new campaign.
Ozil's decision to quit playing for Germany and his strongly-worded four-page statement caused uproar in Germany even as it was applauded by Turkish ministers.
While not wanting to make public comment on some of Ozil's statements from his Twitter post, the governing body said it "emphatically" rejected any suggestions of racism within the organisation.
Authorities in Ozil's ancestral Turkish town have erected a new street sign showing the photo of him in May with Erdogan, replacing one picturing him wearing the global strip of Germany, the country of his birth.
Turkish President Erdogan comes to Ozil's defence
He has 92 caps and has been voted the national team's player of the year five times since 2011 by fans.
"It is with a heavy heart and after much consideration that because of recent events, I will no longer be playing for Germany at global level whilst I have this feeling of racism and disrespect", Ozil wrote.
However, others see Ozil's retirement as no great loss for Germany.
"Whether publicly or not, the player must be protected against messages of discrimination and hatred". "I congratulate Mesut Ozil who by leaving the national team has scored the most lovely goal against the virus of fascism", Justice Minister Abdulhamit Gul said.
"It was about me respecting the highest office of my family's country. I think here lays an important issue", he said. The 29-year-old's exit from Die Mannschaft was met with a muted response from fellow players.
Bayern Munich chief Uli Hoeness said he welcomed Ozil's retirement, saying: "I am glad that this scare is now over", the Bayern boss told Bild.