Last month, it was suggested that new Gunners boss Unai Emery would be given as much as £70m to spend in the summer window but it appears that the Spaniard is ready to use a large chunk of that to make a major addition.
According to CalcioInsider, Emery wants to sign Tolisso and is willing to part with £60m to bring the Frenchman to the Emirates Stadium.
The 23-year-old has just completed his first campaign at the Allianz Arena, with nine goals and six assists coming from 34 outings in the Bundesliga and Champions League.
However, while reports have suggested that a number of star men could leave Bayern this summer, the German giants are said to be unwilling to sanction the sale of Tolisso for any price.
The former Lyon player still has four years remaining on his contract.