The Gunners have been tipped to move for the 24-year-old in a bid to solve their creativity problems, with current number 10 and outcast Mesut Ozil understood to be closing in on a move to Fenerbahce.
While Borussia Dortmund's sporting director Michael Zorc has affirmed that no contact has been made regarding a transfer for Brandt, Arsenal have supposedly been handed a boost in their pursuit of the midfielder.
According to Bild, Dortmund are prepared to let Brandt depart on loan during the January transfer window as he struggles for regular starts at the Westfalenstadion.
The report adds that it would take a lucrative offer to prise the Germany international away temporarily, but the Dortmund hierarchy do not want to sell him on a permanent basis as they believe he can still make a big impact at the club.
Brandt has only managed one goal and one assist in all competitions this term, as well as starting just six Bundesliga games in the 2020-21 campaign so far.