Mikel Arteta sealed a season-long loan deal at the start of the 2025/26 season to bring Hincapie to the Emirates Stadium from Bayer Leverkusen and he played a key role in their Premier League title win and subsequent run to the UEFA Champions League final.
He rotated with Riccardo Calafiori at left-back for Arteta, but after hitting a pre-agreed games played target, the club have now reportedly activated a £45m purchase clause on the 24-year-old.
Arteta is keen on retaining both Hincapie and Calafiori for next season, with Myles Lewis-Skelly now viewed as a midfielder, but the club may push him to consider selling one of them after substantial spending in recent summers.
As per ESPN, incoming Real Madrid boss Mourinho has added Hincapie to his wanted list, before his move to Arsenal can be formalised with meetings planned via his agents after the World Cup.
Previous reports from Spain indicate playing for Los Blancos is 'a dream' for Hincapie and Mourinho is looking to utilise him in his preferred centre-back role after already bringing in Marc Cucurella.
Ibrahima Konate has also landed on a free transfer, following a contract extension for Antonio Rudiger, and Hincapie may need to be convinced over his role at the Estadio Bernabeu before making a call on his future.