The 28-year-old goalkeeper had the remainder of his Udinese contract bought out by the Nerazzurri last week, after an impressive debut season at San Siro.
Handonovic's impressive form in Serie 'A' last term attracted admiring glances from a number of top European clubs, with Gunners boss Arsene Wenger credited with an interest in bringing the Slovenia international to the Emirates Stadium.
However, Arsenal's hopes of landing the player to provide competition for current first choice Wojciech Szczesny appear to have been dashed, after Inter made Handanovic's co-ownership deal permanent.
But, with Victor Valdes set to leave Camp Nou when his contract expires next summer, it could pave way for Barcelona to sign the Inter Milan goalkeeper in 2014.
The Spanish champions must meet the Italian club's high valuation of Handanovic - understood to be in the region of €30million - beating Arsenal to the signature of one of Europe's most in-demand stopper.