The 21-year-old's stock has risen since joining the Bundesliga outfit last summer after scoring 15 times in his first 26 games for the club.
Speaking on German television as a pundit, Matthaus claimed that the marksman's wife has already begun house-hunting in London ahead of the prospective move to the Gunners.
"Arsenal are believed to be interested in Drmic," he told Sky Germany. "I know for a fact that his wife is looking for a flat in London.
"I assume that Drmic will finish the season with Nuremburg hopefully successful and Nuremburg will sell him afterwards with a good profit - in this case to Arsenal."
Drmic scored in Nuremburg's 3-2 defeat to Freiburg this afternoon.