Reading and Birmingham are claimed in the DailyStar as battling to sign Alex Iwobi on loan currently.
The Nigerian international is highly rated at the Emirates, and was even praised by current Gunner Aaron Ramsey as the one to watch out for.
Iwobi is now expected to leave the club on a temporary deal before the emergency transfer window closes tomorrow, with Championship rivals Birmingham and Reading set to battle it out for his signature.
The Royals had the youngster watched as he played 45 minutes for the reserve side last week, and are believed to be keen on bringing him in.
Iwobi is related to Nigerian legend Jay Jay Okocha, who played for Hull City and Bolton Wanderers before hanging up his boots in 2008, and his nephew is also believed to be graced with a great gift, and is likely to have a bright future in the game.
The 19 year-old has made three appearances for the Arsenal first-team this term, but is not a part of the first-team plans at present.