Gunners boss, Mikel Arteta, last week admitted they are “open” to doing a big deal in the winter window.
Signing a striker is a priority for Arteta, with Alexandre Lacazette out of contract in the summer and Pierre-Emerick Aubameyang out in the cold.
But they face huge competition for Vlahovic, who has been one of the most prolific strikers in Europe in the past two seasons.
The likes of AC Milan, Juventus, Liverpool, Newcastle and a host of other European clubs are watching the player closely.
However, Arsenal is ready to steal a march on their rivals, by paying a “premium” fee for the 21-year-old now, so they avoid a scramble in the summer.