Arsenal are interested in Genk winger Leandro Trossard.
The Mirror says Unai Emery will only have £40million to spend this summer.
The Belgian is valued at around £22million, and would use up more than half of their budget.
The restricted budget means the new Arsenal boss faces another transfer window operating on tight resources after the cash-strapped club did not have enough money to make any permanent signings in January.
That means the Gunners will have to look at cheaper options in the market to improve their squad for next campaign.