The Gunners have made an offer of £87m for Monaco starlet Kylian Mbappe, according to French publication L'Equipe.
The 18-year-old had a breakout season at the Ligue 1 club, netting 26 goals in 44 appearances in all competitions as Monaco won the league title and made the semi-finals of the Champions League.
Arsenal could face fierce competition from around Europe though, with Real Madrid also said to be interested in Mbappe.
Meanwhile, The Sun reports that Mesut Ozil is ready to sign a new £280,000 per week contract at the Emirates.
The Germany international has a year left on his current deal, and was thought to be holding out for a whopping £350,000 per week but is now prepared to reduce his demands.
No other major clubs are reportedly interested in his services and manager Arsene Wenger also wants the midfielder to sign a new long-term deal.
Goalkeeper Gianluigi Buffon has also revealed that Wenger tried to sign him when he was at Parma, as did then-Man Utd manager Sir Alex Ferguson, but he decided to remain in Italy.
"From what I know, there have been three serious times when English clubs made an approach for me," he said in quotes carried.
"Two of them were when I was a young player at Parma, and I know Alex Ferguson and Arsene Wenger asked about me - and then, when Manchester City was taken over, I know they approached Juventus."
"There are many reasons why none of the deals happened. Even though the Premier League is a special league, I have always wanted to stay loyal to Juventus."