Arsenal want Danilo and the midfielder has experienced a massive moment for his career by winning the title with Palmeiras.
The Gunners are likely to be in the market for a new midfielder in January or at the end of the season.
Arsenal need more depth to compete with Thomas Partey in their holding midfield role.
Douglas Luiz looked like being a sensible target but he then went and signed a new contract with Aston Villa.
That means Edu and co need to look elsewhere but they could still go for another Brazilian.

Arsenal want Danilo
A name that keeps coming up is Palmeiras talent Danilo.
Goal reported in August that Arsenal had launched a £20million move for Danilo but no move was completed.
Palmeiras didn’t want to sell at that time but the London Evening Standard noted in September that Arsenal were still keen.
The Sun added in October that Arsenal think Palmeiras will sell in January and the Gunners will offer £26million for him.
Edu knows the Brazilian market well and may now believe that Danilo is the man to come in and compete with Partey.
Danilo may well make a January move to Arsenal but he had bigger priorities on Wednesday night.
Palmeiras took on Fortaleza knowing that a win would give them the Campeonato Brasileiro Serie A title.
Palmeiras coasted home to victory with a 4-0 win as wonderkid Endrick got himself on the scoresheet in a thumping victory.
This is the 11th league title Palmeiras have won in their history and Danilo started the game.
Danilo played 65 minutes before being substituted and picked up a yellow card, not that anybody will care having clinched the title.
Palmeiras still have a few games left to play but this could be the ideal way for Danilo to go out.
The 21-year-old would be forgiven for feeling that this is the time to leave and test himself in Europe, with Arsenal looking like his most likely destination.
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