Central defender Iker San Vicente came through the ranks at Spanish second division outfit Osasuna.
But the 16-year-old has rejected a long-term contract and is available on a free transfer in January.
He is wanted by Premier League champions Chelsea, who have a track record of stocking up on promising talent.
The Mirror claim Arsenal sent a scout to run the rule over San Vicente last month.
But the Premier League duo face competition from Spanish giants Barcelona and Real Madrid.
Italian champions Juventus are also tracking developments.
San Vicente has drawn comparisons to Barcelona and Spain star Pique for his physicality and ability to play out from the back.
Meanwhile, Arsenal are planning to hand Jack Wilshere a new four-year deal.
Wilshere, 25, has less than nine months left on his current deal.
He is battling his way back into contention after breaking his leg last term.
