The Gunners have identified midfield as an area that needs attention and have been linked with several potential signings.
They asked Paris Saint-Germain about Argentina international Leandro Paredes, but he is set to sign for Italian giants Juventus.
South American midfielders remain the flavour of the period for the Gunners though and they are now zeroing in on Danilo.
The 21-year-old midfielder is on the books at Brazilian giants Palmeiras and Arsenal believe they may be able to sign him before the window slams shut.
Danilo came through the ranks at the Palmeiras after being snapped up in 2018 and added to the club’s Under-17s.
He has caught the eye with his performances and Arsenal believe he would fit the bill in north London, while having further scope to develop in the coming years.
A defensively minded midfielder, Danilo has already made over 120 appearances for Palmeiras across all competitions despite his tender years.
He is under contract with the Brazilians until the end of 2026.