Arsenal chief scout Steve Rowley watched Basel defender and Manchester City transfer target Aleksandar Dragovic during his side's 2-2 draw against Tottenham in the Europa League on Thursday night, according to the Metro.
Gunners manager Arsene Wenger has been linked with a move for the tall Austrian defender in the past, having instructed scouts to keep tabs on the centre-back since he joined Basel two years ago. But Manchester City and Everton have also been linked with Dragovic.
The 22-year-old was impressive against Spurs, and Wenger has received months of positive scouting reports from his network of spies across Europe.
The report claims Wenger has now seen enough to sanction a summer bid for the centre-back, and a deal could be reached in the next few months if a price can be agreed between the two clubs.
The Arsenal boss is reportedly willing to pay £6m for Dragovic as he looks to revamp his defensive options heading into next season. But with competition from the likes of City, he may have to move fast to tie up a deal.
Sebastien Squillaci, Johan Djourou and Andre Santos are all expected to leave at the end of the campaign. Djourou and Santos are currently out on loan, while Squillaci has barely featured in the first-team over the past 12 months.
The report also claims Arsenal are willing to consider bids for Bacary Sagna. The Frenchman's contract expires at the end of next season, and the two parties have so far failed to reach an agreement regarding an extension.