The Daily Mail says Spurs, who have already had a £5million offer rejected, have upped their bid to £8m and are willing to loan the prodigious 17-year-old back to the Tractor Boys next season.
But Gunners' boss Arsene Wenger is also a big fan of Wickham, whose goals saw England crowned European Under 17 champions in May.
Wickham netted both goals in the semi-final win over France and then the winner against Spain in the final, following up his three goals in four games for Ipswich the previous month.
Wenger is desperate to add firepower to his attack and does not want to lose out on Wickham, especially to Spurs.
Hard-up Ipswich, whose latest accounts will reveal a debt close to £50m, are under pressure to sell.