Atletico Madrid forward Matheus Cunha is reportedly the subject of interest from Arsenal.
Arsenal boss Mikel Arteta will be provided with a transfer budget of £50m to spend at the midway point of the campaign.
According to The Athletic, the Spaniard tactician is giving consideration as to whether to request that club officials make a bid for Atletico Madrid striker Matheus Cunha.
Arsenal and Chelsea reportedly both want to sign Crystal Palace striker Wilfried Zaha.
The Ivory Coast international has been at the South London club since 2015 and has gone on to make 443 appearances for the Eagles during that time.
According to TeamTalk, the 30-year-old has been the subject of interest from Arsenal and Chelsea earlier this year, although they are currently pursuing alternative signings.
Arsenal have reportedly made an approach to sign Las Palmas midfielder Alberto Moleiro.
The 19-year-old has enjoyed an impressive campaign for the Segunda Division side this season, having contributed three assists from 15 second-tier appearances.
The teenager has now represented Las Palmas on 54 occasions in all competitions, contributing three goals and four assists.
Arsenal have got themselves in pole position in the race for Leicester City midfielder Youri Tielemans during the January transfer window.
The Belgium international was touted to join the Gunners during the last transfer window, but the North London side were put off by the Foxes’ price tag.
Vitoria Guimaraes midfielder Ibrahima Bamba has reportedly emerged as a transfer target for Arsenal.
The 20-year-old has established himself as a prominent figure in the Guimaraes side this term and has earned plenty of plaudits with his performances from a number of clubs across Europe, including Premier League clubs.