Tottenham were unable to seal a deal for the Dinamo Zagreb midfielder in the summer.
Reports claim Spurs and Dinamo Zagreb failed to agree on a fee for the highly-rated 17-year-old midfielder.
The Daily Express now reports that Arsenal are ready to capitalise on their north London rivals inability to seal a deal for Halilovic.
Halilovic has also been strongly linked with the likes of CSKA Moscow and Bayern Munich.
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The start of the 2017-18 Premier League season is just around the corner and is shaping up to be one of the most competitive yet.
As always it is the so called “big clubs” that have splashed the most cash in the transfer window so far this summer. Manchester United or City? Arsenal or Tottenham? Who are the winners and losers of the transfer window so far?