Arteta and Jesus worked alongside one another during their time at Man City, and the latter is heavily expected to leave the Premier League champions in the current window.
Tottenham Hotspur, Chelsea and Juventus have also been credited with an interest in Jesus, but Arsenal are understood to be leading the race for his signature.
According to Goal, Jesus's proposed move to Arsenal is inching ever closer, and the Gunners may be in a position to announce his signing before the end of the week.
The report adds that Arsenal are yet to agree a fee with the Premier League champions for the striker, who is valued at £50m despite the fact that his contract is up in 2023.
Arsenal are said to have already had a £30m bid turned down by City, but the North London club are confident of agreeing a fee as they prepare to formulate a fresh offer with achievable add-ons.
Jesus has spent the last five-and-a-half years at the Etihad Stadium following his £28.8m signing from Palmeiras in 2017, and he has gone on to register 95 goals and 46 assists in 236 appearances for the club.
The South American won his fourth Premier League title with the Citizens in 2021-22, while he has also collected one FA Cup and four EFL Cup titles during his time in Manchester.
Jesus contributed eight goals and nine assists to Man City's Premier League title triumph last term, racking up 13 goals and 12 assists in 41 appearances across all competitions in total.
Arsenal's only confirmed signing of the summer so far has been 19-year-old attacker Marquinhos, but more are expected to follow the Brazilian through the door this week.
In terms of outgoings, the Gunners are reportedly set to send two academy stars out on loan to Eredivisie clubs for the 2022-23 season.