O'Connor is currently a free agent after being released by the Gunners at the end of last season after making just one first-team appearance for Arsene Wenger's side following his switch from Crystal Palace back in 2010.
Newcastle United manager Rafa Benitez
The Chronicle reports that the Magpies could be the beneficiaries of his departure, with a two-year deal on Tyneside potentially being put on the table for the 20-year-old, who can operate in the centre or on the right of the defence.
Unfortunately for the Newcastle hierarchy, the possible deal seems unlikely to appease frustrated supporters if it does go through during what has been a slow summer for the Championship winners.
With just over a month to go before the new campaign begins, Christian Atsu remains their only signing so far during this window, and supporters may have been hoping that a number of marquee names would arrive to make up for the lack of activity.
But if a deal for O'Connor does go through, Newcastle fans will be hoping that the signing proves to be something like as good a piece of business as the last deal that saw a player move to the Magpies after most recently being on Arsenal's books, with Isaac Hayden proving to be an integral part of the team that won promotion following his move from the Emirates last year.