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Crystal Palace are also tracking the left-back, whose current deal will expire at the end of June meaning he can leave on a free transfer.
The two London clubs will face plenty of competition for the 31-year-old, who was part of Chelsea’s Champions League winning side in 2012.
Leicester City have long been keen on the defender, while AC Milan are also pushing hard to tempt Bertrand to Italy. Sources close to the player are confident a decision will be made over his future quickly.
Southampton had wanted to keep hold of Bertrand, who has been with the club since 2014 after initially joining on loan from Chelsea. The two parties have been in talks for months over a new deal, but they have now collapsed with the Saints reluctant to meet the full-back’s demands over contract length.
The Gunners are in the market for a left-back and they view Bertrand as a viable option, given his experience and the fact he is homegrown.
Arsenal are not the only ones tracking the defender, though, with Crystal Palace also keen.
The Eagles are resigned to losing Patrick van Aanholt, whose contract also runs out in June, and they would like to bring in Bertrand on a free.
Southampton, meanwhile, are braced for his departure and are set to target Brentford left-back Rico Henry as a replacement.
Asked about the situation last week, Southampton manager Ralph Hasenhuttl said: “When this happens, when there is no solution for the future in this position, we will have to look at other options.
“We have our weeks where we put our targets down and in these [lower divisions] there are definitely some options that you can have a look at.
“The prices are rising massively, even while you are paying for a Championship player. I don’t have to tell you, look at [Said] Benrahma and how much he cost when he went from Brentford to West Ham. It is a lot of money that you have to pay for them.”
Brentford would let Henry go for a fee between £10-15million.