The 25-year-old has been on the Reds’ radar for some time, and some reports suggest that they could return with a £6m offer after seeing an initial move for his signature rebuffed.
But, the Gunners are now ready to battle their domestic rivals for the Spaniard, who is believed to be free to leave Portugal for the right price.
Arsenal are set to up their transfer activity in the coming weeks amid growing unrest among their fans.
Their only arrival of the summer so far has been young striker Yaya Sanogo – a free transfer – while the likes of Luis Suarez and Gonzalo Higuain appear to have evaded Arsene Wenger.
It is believed that the Frenchman sees Capel as an ideal addition to his squad, as he looks to, once again, secure a top four finish.
Marseille are also interested, but a move to the Premier League is thought to be more attractive to the wide man.
Capel was once thought of as one of Spain’s top talents, but injuries have seen his career stagnate in Lisbon.
Arsenal fans, is Diego Capel really good enough? Or shoukd you be looking at bigger and better players?
Tell us what you think below!
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