Gunners chief Arsene Wenger is believed to have made securing a top class centre-forward his priority for January, and is keen on the Brazilian forward.
Costa has made an excellent start to the current campaign, netting 12 league goals already.
The 25-year-old was linked with a summer move to Liverpool before he penned a new deal at the Vicente Calderon, but that will not deter Wenger.
The Frenchman is confident that an opportunity to join the Londoners’ title push may be enough to tempt the goal getter to make the move in the New Year.
Costa is set to pledge his international future to Spain ahead of the 2014 World Cup, and may be keen to stay in Madrid to boost his hopes of being a part of La Furia Roja’s squad.
Wenger is also thought to be keen on Real Madrid’s Karim Benzema.
The Frenchman has been linked with a move away from the Bernabeu of late, and rumours suggest that negotiations are already underway.
Liverpool’s Luis Suarez is also another target for the Gunners.
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