La Nazione says Arsenal are willing to offer Vlahovic wages of £300,000-per-week.
Only ex-captain Pierre-Emerick Aubameyang is paid more, earning up to £350,000.
Vlahovic, 21, is one of the hottest prospects in Europe with 17 goals in 21 Serie A games this season.
As a result, Arsenal could be made to pay £88million for the forward, believed to be a price they will match.
Need a VPN? Or seeking to switch? Then support Tribal Football by clicking here to sign up with our official partners NordVPN. Not only will you receive the best VPN experience, but also great discounts by signing up via Tribal Football. Thanks for your support!