Fraser's current deal at Bournemouth expires in the summer of 2020, meaning he'd be left with only one year left in the coming summer window.
The Cherries are agonising whether to cash in on the 25-year-old this summer or risk losing him for free next year.
Bournemouth will demand a big fee but to some extent, their hands are tied, they can not play hardball too much or they will be unable to cash in on the Scotland worldwide, they will have to be reasonable with their valuation.
The flying wideman has been a standout performer for the Cherries in 2018-19, with his pace and end product making him a unsafe opponent.
For starters, the player himself, when asked about being linked with Arsenal, said: "I'm not going to lie, it's very nice".
"They are a huge club, a massive club".
He's also aware, however, that if no clubs come in for him at the end of the season that moving on a free transfer next year would likely be coupled with a large signing on fee.
"I'm not going to lie, you do feel good, especially when it's a massive club".
Arsenal will lose Aaron Ramsey this summer and an additional attacking midfield option would surely be welcome at the Emirates Stadium. He moved to Bournemouth in a £400,000 transfer from Aberdeen in 2013 when the Cherries were a League One side.
Fraser has been in the form of his life this season, scoring six goals and claiming 10 assists to help the club open up a 10-point gap over the relegation zone.