However, since moving to the Camp Nou, Coutinho's career has somewhat hit the skids, failing to establish himself as a regular at the Catalan club, before being shipped off to Bayern Munich on a season long-loan last summer.
They claim that the Gunners were "willing to offer" Matteo Guendouzi as part of a potentially permanent player-plus-cash deal, though with Barcelona wanting €80m for Coutinho, and being "not interested" in the young Frenchman, a loan deal looks to be the more likely option.
It is believed Arteta wants to sell him this summer.
Guendouzi has been frozen out of Mikel Arteta's plans in North London over apparent attitude problems.
Coutinho, meanwhile, has struggled for form since his big-money £140m move from Liverpool in January 2018.
Another loan deal is on the cards for Coutinho and Arsenal have emerged as the favourites.
"The defence is key to the rebuild, they have been rebuilding for seven, eight years, this period in particular has been very bad for Arsenal fans, but I think Arteta knows the right path to take".
Elsewhere, questions have been asked of Mustafi's role on a regular basis during his time with the Gunners, and Arteta has admitted to being in the market for another centre-half after seeing the Germany global ruled out of his immediate plans through injury.