Napoli have reportedly pulled out of a deal to sign Josip Ilicic after failing to meet Palermo's £12m asking price.
The 25-year-old scored 10 goals in 29 Serie A starts for the Rosanero, leading to links with a number of clubs, including Arsenal and Chelsea.
According to talkSPORT, the Gunners, who look likely to miss out of Fiorentina forward Stevan Jovetic, could ignite their interest in Ilicic.
Palermo suffered relegation to Serie B this season and chairman Maurizio Zamperini is said to be keen on cutting the wage bill at the Stadio Renzo Barbera.
