The Croatian ace only joined Atletico Madrid from Bayern Munich over the summer, at which time he did attract interest from the Gunners.
But even though he’s only been in Spain for six months – netting 14 goals in 22 games in that time – Arsenal are hopeful of securing a £25m deal.
Arsene Wenger is desperate to bolster his attacking options for the latter half of the campaign, with his side far from certainties to win the race for a top four finish.
The Frenchman also wants to send Yaya Sanogo out on loan, but is aware that he will be left with very little cover for Olivier Giroud and Danny Welbeck should he opt to do so.
Atletico are likely to be reluctant to sell, but the La Liga champions are believed to have some financial issues.
The arrival of Fernando Torres from Chelsea, via AC Milan, may also cause them to consider big offers for Mandzukic.