The 21-year-old is currently on loan at Reims and has had a fantastic season, scoring 20 goals in 35 Ligue 1 appearances this season.
His performances have piqued the interest of several clubs across Europe ahead of his return to Arsenal this summer.
He still has two years left on his contract and Arsenal are open to offers to let him go in the next transfer window.
And according to Italian outlet Calciomercato.com, AC Milan are planning to hold talks with the player’s agents ahead of the end of the season.
The Rossoneri want to sign a striker this summer and Balogun has emerged as the club’s top target.
They have been impressed with what they have seen on him this season and are keen to get their hands on him.
But they will face competition from German giants RB Leipzig who have been in contact with his representatives.
Arsenal are also looking for considerable money before agreeing to sell him and are demanding more than €30m for the striker.
