Arsenal are allegedly in negotiations with Adidas over a £40m-a-year kit deal for 2019.
The Gunners' contract with Puma expires at the end of next season and the rival sports brand is in pole position to become their next shirt manufacturer, according to the Daily Mail.
Arsenal's agreement with Puma is worth £30m per year, but Adidas are said to be ready to come in with an improved offer which could rise further if Arsene Wenger's side secures Champions League football by winning the Europa League.
A £40m-a-year kit deal would be one of the most lucrative in England, despite being some way behind Manchester United's £75m-a-year Adidas contract and Chelsea's £60m-per-season Nike deal.
Arsenal are also said to be seeking their first sleeve sponsor to further boost revenue.
