The right-back has established himself as one of the first-team stars at the Emirates Stadium over the last two seasons with a series of impressive performances.
Barcelona were thought to be particularly keen on his signature as a result, with Spanish newspaper Sport reporting that they had contacted the international about a return to the Nou Camp.
However, according to Mundo Deportivo, it is Manchester City who are currently the most interested in his services.
Blues boss Pep Guardiola is expected to try to improve the defence this summer, and the 21-year-old could be one of several signings to help him do so although as yet no official bid has been made.
The Spanish outlet claims they will face competition for his signature though, naming PSG, Bayern Munich, Barcelona and even Manchester United as suitors also.
A move to Atletico seems unlikely given they have added Sime Vrsaljko as competition to Juanfran this summer while a sale to their Premier League rivals is also improbable.
But with all of those clubs able to offer big money, Arsenal may be facing a fight to keep hold of their man this summer.