The Gunners are favourites to sign Ghoulam ahead of Chelsea, PSG and Real Madrid, according to Marca.
Reports in Spain claim Arsenal manager Arsene Wenger has been in talks with Ghoulam’s representatives over the last few days.
Napoli only signed the 24-year-old back in January 2014 from Saint-Etienne but Arsenal are prepared to pay the reported £8million asking price.
The Algeria international, who was named in the Europa League team of the season, is a key target for Wenger with Nacho Monreal linked with a move away from the Emirates Stadium this summer.
Athletic Bilbao are rumoured to be leading the race for Monreal’s signature, with the 29-year-old reportedly set to join the La Liga side on a three-year deal.
Chelsea manager Jose Mourinho is searching for a replacement for Filipe Luis and has reportedly identified Ghoulam as a potential candidate, according to reports.
Luis, 29, is believed to be unhappy at the lack of first-team opportunities at Stamford Bridge and is open to a move away with Atletico Madrid rumoured to be interested.
The La Liga giants recently saw Toby Alderweireld join Tottenham for around £12milion and are keen to strengthen their defensive options.
Written by Jack Wynne – @JackRobertWynne