The Gunners had identified the 17-year-old as a long term transfer target, but now look set to be beaten to his signature by Serie A giants Roma, who are poised to meet the strikers £3.6million release clause.
Barcelona had previously made it clear they wanted to keep the youngster at the Nou Camp, but the Paraguayan is intent on leaving as he believes he deserves more first team opportunities, despite his tender age.
Barcelona have the likes of Pedro, Alexis Sanchez, Neymar and Lionel Messi battling for the forward roles, leading Sanabria to believe his first team opportunities will be limited.
The 17-year-old has scored goals for fun at youth level, and his form has caught the attention of several top clubs across Europe.
Arsenal in particular had registered a strong interest, particularly with Wenger looking for a striker to provide cover for Olivier Giroud during the second half of the season.
The Gunners boss has a history of recruiting and developing exciting young talent, but it seems he is set to lose out in the race for Sanabria’s signature.
Roma remain in the hunt for the Serie A title, and boss Rudi Garcia has made an offer which is likely to be accepted by both the club and the player.
Sanabria joined the Barcelona academy in 2009, and recently made his senior debut for Paraguay in their 3-3 draw with Germany in August.