The 20-year-old Senegalese striker, who is currently out on loan at Serie B side Modena, has also reportedly attracted interest from West Ham United.
"It is very encouraging for me to be followed by clubs like Arsenal," Babacar told Sky Sports News. "They are one of the biggest clubs in the world and they do great things with young players.
"The coach (Arsene Wenger) has a great reputation at developing the talents of the young players but at this time I am under contract at Fiorentina.
"It is only Fiorentina who shall decide if I go to England. Through my agent, I also received interest from West Ham but not anything official yet."
Babacar has scored one goal in 23 appearances for Fiorentina.