Inter Milan are reportedly prepared to sell Portugal international Joao Mario in January for £26m.
The 24-year-old only joined Inter from Sporting in the summer of 2016, but has started just three Serie A matches this season after struggling for form.
Arsenal have previously been credited with an interest in the versatile midfielder, and according to TMW, the Gunners have learned that a bid of £26m would be enough to sign him when the January transfer window opens for business.
Mario played a key role in Portugal winning Euro 2016 last summer, and scored 14 times in his final two seasons with Sporting before making the move to Inter.
Arsenal are believed to be keen to secure at least one forward-thinking midfielder in January as they prepare for the potential exits of Mesut Ozil, Jack Wilshere and Alexis Sanchez.