The 24-year-old has made just seven La Liga starts so far this term following reports of a fall-out with manager Diego Simeone, who is understood to be unhappy with the Belgian's form.
However, that has not deterred Arsenal boss Arsene Wenger, who is thought to be a keen admirer of the winger.
Spanish publication Mundo Deportivo claims that the Gunners are willing to table of bid of €50m (£44m) to prise Carrasco away from the Wanda Metropolitano this summer.
However, Atletico would likely command a higher fee, with Carrasco under contract at the club until 2020 and containing a €100m (£88m) release clause in his current deal.
Arsenal could also face competition for his signature, with Italian champions Juventus thought to be monitoring the situation as well.