The 23-year-old will be a free agent in the summer as his contract expires.
Arsenal are plotting a major shake-up of their squad, with a number of players expected to leave the Emirates.
Kieran Gibbs is amongst those who could depart and a new left-back has been earmarked.
Kolasinac sparked interest from Chelsea in the January window and Antonio Conte had a £5.3million bid rejected.
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Sead Kolasinac has reportedly had talks with Arsenal
Antonio Conte wanted to sign Sead Kolasinac in January
Liverpool, who are looking for an upgrade on Alberto Moreno, also expressed an interest.
The Daily Mail report Arsenal are leading the chase for Kolasinac’s signature.
It is said negotiations have begun between Arsenal and the player’s representatives over a summer deal.
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Kolasinac’s versatility would appeal to Arsene Wenger as he can also play at centre-back or as a defensive midfielder.