Chelsea secured a season-long deal for the midfielder from Chelsea last Summer from Real Madrid but the Blues have no option to buy. Maurizio Sarri confirmed he wants Kovacic to remain at Stamford Bridge next season but that does not appear to be on cards now.
The Daily Mail reports that Chelsea may not even be in a position to make that happen due to the fact they have a FIFA-imposed transfer ban looming over the club.
The Anti-aircraft Gunners are on the market for a new central midfielder after selling Leandro Paredes to Paris Saint-Germain in January.
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