The Argentine is thought to be close to completing a move to the Emirates Stadium and some reports claim that he is due for a medical with the Gunners on Monday.
However, Adams isn't so sure that the 25-year-old forward is the type of signing that Arsenal should be making.
"My fear is that if Real don't want him, you are coming in under that," Adams told The Sun.
"If you want to compete with Real Madrid, you don't get their cast-offs. You need the best players in the league to win the league."
Higuain scored 16 goals in 28 La Liga appearances last season.