The Borussia Dortmund playmaker is believed to be a top target for the Gunners, who have been tracking him for some time.
However, United are also in the race ahead of what’s likely to be a busy transfer window in the North West, with Gundogan being eyed as a potential long-term replacement for midfield metronome, Michael Carrick.
And reports now claim that despite talks with Arsenal and Manchester City having taken place, the 24-year-old has his heart set on joining Louis van Gaal’s side.
Gundogan looks likely to follow manager Jurgen Klopp out of the Dortmund exit door in a few months’ time, with the deep lying pass-master’s current contract due to expire in 2016.
BVB want to keep their man, but selling to bring in some cash rather than risking a free transfer is more appealing to the Bundesliga giants.