The Italian media are stating that the Gunners want to add the box-to-box Brazilian to their ranks this summer.
The 24-year-old box-to-box midfielder has been a star man for the modest Serie A club this summer, with the South American gaining plenty of plaudits for his robust performances in 2014-15.
The former Brazil under-20 star signed for the Italian club in 2012 and has become a key factor in Andrea Stramaccioni’s midfield over the last 18 months.
The Gunners have been linked with a host of combative midfielders since the departure of Alex Song, with the North London side being accused of lacking fight in the centre of the park.
Francis Coquelin’s emergence this season has seemingly filled the void for Arsene Wenger’s men, but rumblings of new midfield additions continue to do the rounds.
The report states that Italian clubs are also interested in Allan’s signature this summer, while Chelsea are also mentioned as a potential suitor.
The South American star has started 26 Serie A games for Udinese this season, scoring once.
The Gunners already have one former Udinese man in their ranks in the form of Alexis Sanchez.