The Gunners have been linked to the 21-year-old for some time, and it is believed that they have been knocked back by Monaco on two occasions.
Arsenal, who reportedly paid a club-record fee of £52m for Lyon striker Alexandre Lacazette, tabled a second bid of £40m for Lemar but they were unsuccessful.
"I love him as a player," Pires told Sky Sports News. "For me, Thomas Lemar is one of the best French players there is. He can play on the left, he can play on the right, he can score goals and he can make assists."
The Premier League club are thought to be willing to give Lemar a five-year deal worth £100,000 per week.