Arsenal have submitted an official offer to sign Sassuolo midfielder Manuel Locatelli this summer, according to the Italian club's CEO Giovanni Carnevali.
Locatelli has been one of the star performers for Italy at Euro 2020 and scored a brace in their 3-0 victory over Switzerland in the group stages.
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The 23-year-old also contributed four goals and three assists for Sassuolo last season and helped the club to an eighth-placed finish in Serie A.
When asked about any interest in the midfielder, Sassuolo CEO Carnevali told Sky Sport Italia: "There are other teams interested in Manuel, Arsenal is one of them and perhaps they are the one that is further ahead because they have made us an important proposal.
"Indeed, up to now it is the only company that has submitted a concrete offer."
Arsenal's interest in Locatelli could also mean Granit Xhaka is on his way out of the north London club with reports linking the midfielder with a move to Roma to join up with Jose Mourinho.
Carnevali also confirmed that Arsenal will face competition from Juventus for Locatelli's signature but added talks with the player have not taken place.
"Juventus are the only Italian club we talked to about Locatelli," Carnevali added. "They have interest, we spoke to Juve's director Federico Cherubini last week but we have not yet discussed the financial details.
"We have a good relationship with Juve so we will talk it over soon. We are trying to leave the player [Locatelli] calm, so I haven't spoken to him or his agents yet.
"We can think about Locatelli's future but above all we care about his present and that means Italy doing well at the Euros."
Sources have told ESPN that Arsenal are also in talks to sign Benfica left-back Nuno Tavares while the club rejected a second bid from Aston Villa for youngster Emile Smith Rowe.