The News of the World says Gunners boss Arsene Wenger wants West Ham's Argentinian star to replace Thierry Henry, who joined Barcelona last week.
A source close to Tevez said: "Arsenal are serious contenders. If Tevez stays in England, it's between them and United."
Arsenal want Tevez on a year's loan and can meet the £9million package to cover his wages and registration rights. But they cannot stretch to £28m for a permanent deal.