The Mirror says Chelsea and Manchester United are also hot on the heels of the 20-year-old Jamaican born star who has taken German football by storm with eight goals in sixteen games for Leverkusen this season.
But it's Arsenal who are believed to be making significant moves to clinch a deal for Bailey after watching him TWICE in the last week.
Arsene Wenger dispatched scouts to watch Bailey at Hannover last Sunday and they came away hugely impressed after the winger scored twice in a 4-4 draw.
And Arsenal's recruiting team saw him again on Wednesday as Baily scored the winner at Borussia Moenchengladbach to fire Leverkusen into the German Cup quarter-finals.
The Gunners are prepared to go to £30m to sign Bailey next month.