The 26-year-old was said to be close to joining the Gunners last summer, but Eddie Howe's side reportedly refused to let Fraser leave the club.
Despite chalking up seven goals and 14 assists throughout the 2018-19 campaign, Fraser has registered just one goal and four assists in the Premier League this term as the Cherries find themselves in the relegation zone amid the coronavirus suspension.
According to Metro, Mikel Arteta is a keen admirer of the Scotland international, and the Gunners are said to be eyeing up a free transfer with Fraser's contract at the Vitality Stadium set to expire in June.
The report also claims that Arsenal could face stiff competition from Everton for the winger's signature, while Bournemouth are allegedly still holding out hope that Fraser will put pen to paper on a new deal.
The 26-year-old has netted 24 times in 203 appearances for Howe's side since arriving from Aberdeen in 2013.