Arsenal are flying high at the top of the Premier League table and are expected to back Mikel Arteta in this month’s transfer window.
They were keen on Danilo last summer, but were unwilling to meet his asking price; it has been suggested they will go back in for him again.
Danilo progressed through the youth ranks at Palmeiras and he was a key component of their 2022 title-winning team.
The 21-year-old ended the 2022 season with seven goals and four assists from 58 appearances in all competitions last season.
In addition to Arsenal, he has generated significant interest among La Liga outfits, and Barcelona and Real Betis are planning to work together to land him, according to Spanish daily Mundo Deportivo.
Both teams intend to use the same approach they used to acquire Emerson Royal from Atletico Mineiro in 2019.
The Brazilian outfit are expecting an offer in the region of €25m and the La Liga duo could come to a deal where each club will pay half of the transfer fee and retain a percentage of Danilo’s economic rights.
It remains to be seen whether Arsenal will be able to snap the player before the La Liga duo can finalise the deal.