The Gunners are looking to make season-defining signings in the coming weeks and are trying to push the limits of what is possible.
It remains the case that they are going to show some caution in terms of value for money. Morgan Rogers was their top target for this summer, but Arsenal were not willing to match the £117 million bid Chelsea made to Aston Villa.
However, the North London club do have a hefty transfer kitty to spend, and can match the personal demands of most players in the world.
We revealed earlier this week on Flashscore how the Gunners are being offered the chance to sign Vinicius Junior if he fails to reach a new contract agreement with Real Madrid.
That situation is ongoing - but has not deterred them from making explorations on other deals.
Among them are Bradley Barcola from PSG, Athletic Club's Nico Williams and Yan Diomande from RB Leipzig.
But sources indicate that they also have a very strong interest in Atletico's Argentinian forward Alvarez.
He is described as a player they would be willing to stretch their finances for, as they attempt to improve their goal power in the 2026/27 season.
Alvarez is wanted by LaLiga giants Real Madrid and Barcelona, who have both made their initial proposals known, but Atletico would prefer him to join a foreign club if he leaves.
Moving back to England, where he starred for Manchester City earlier in his career, is something the player is open-minded about.
Sources have told Flashscore that sporting director Andrea Berta has been trying to unlock a deal for Alvarez.
Arsenal know a level of patience is needed, and that they are not the top landing spot for the player at this moment, but their status as Premier League champions gives them an edge.
And in contacts with representatives, Arsenal have tried to assure Alvarez's camp that he would be joined by another significant attacking signing if he opts for the move to Emirates Stadium.
At a time when the Vinicius Jr. speculation is heating up, Arsenal are attempting to make sure they are working on simultaneous deals that give them the best possible chance of building on their success from last season.