Real Madrid have set a big asking price for the striker.
Football Soccer - Juventus v Milan - Italian Cup Final - Olympic stadium, Rome, Italy - 21/05/16
The Gunners are keen to add a striker to their squad this summer after watching Olivier Giroud and Theo Walcott struggle for consistency last season.
They attempted to secure a move for Leicester City star Jamie Vardy before Euro 2016, but he opted to stay with the Premier League champions after mulling over the offer.
Spain's Alvaro Morata in action with Turkey's Selcuk Inan
That has led Arsenal to look at other options and Alvaro Morata is one of the players that they have been linked with.
He returned to Madrid from Juventus this summer and the Spanish giants are looking to make a quick profit on him in this transfer window.
Spain's Alvaro Morata has a shot saved by Czech Republic's Petr Cech
The player is well known to manager Arsene Wenger, who has followed his progression since he was a teenager in the Spanish giants’ youth setup.
However, the London Evening Standard reports that Real Madrid have set a £57 million asking price for their man and Arsenal are unwilling to do business at that price.
It now remains to be seen whether they will target a different forward or try to convince the Spanish giants to lower the asking price for the Spanish international.
Spain's Alvaro Morata shoots