The midfielder is also being monitored by rivals Chelsea.
The midfielder has been one of the star performers in Roberto Mancini’s side this season with a series of impressive performances from him generating widespread praise.
He is currently on loan in Italy from Dinamo Zagreb having joined in the last January transfer window, with the Italians holding the option to sign him permanently for £8m.
They would be willing to sell him on though, with them eyeing as much as £14.5m for their star man, although £12.3m could be enough to tempt them into a sale, according to Calciomercato.
That could tempt Arsenal into making a move, with them having monitored his progress since his move to Italy and been impressed by the way he has settled in.
Chelsea are also interested in his signature and could rival the Gunners, but a move to the Emirates is arguably more attractive given the two clubs’ contrasting seasons.
A move would also make more sense for the Gunners, with them short in that area, having lost Francis Coquelin to injury, while Mathieu Flamini and Mikel Arteta are not long-term options given their age.