Villa reportedly lodged a £25million bid for Smith Rowe this week as part of the club's plans to strengthen Dean Smith's squad for next season.
But Arsenal rejected that offer and remain confident of tying the 20-year-old - who grabbed four goals and eight assists in 33 appearances last season - down to a new and improved long-term contract.
inclair told talkSPORT: “The biggest thing out of all that is, why are they [Villa] looking to buy him?
“I have said it before about Smith Rowe. He reminds me of Paul Merson. Before the ball is coming into him, he's looking to play it around the corner, first time, then get after it and join in.
“I feel he could be a player that could go in, if Grealish did go, and develop his game. Start playing Premier League football and do himself a whole heap of good."