The People says the QPR star is happy with life in the capital but wants to stay in the top flight.
With Rangers heading for relegation, 33-year-old Cesar is likely to leave, with Robert Green expected to be in goal in the Championship.
And that has alerted Gunners boss Arsene Wenger who wants to sign an experienced man to have between the sticks.
Wenger was hoping to land Barcelona’s Victor Valdes but the Spanish giants are now unwilling to let him leave.
Is Julio Cesar the answer to Arsenal's keeper dilemma? Give us your shout below...