Unai Emery is keen to sign a winger this transfer window, but it is proving to be a hard task with just a £40million budget.
The Gunners have had a £40m bid for Wilfried Zaha rejected by Crystal Palace, with the Eagles demanding £80m for the Ivory Coast international.
According to Sport, Emirates chiefs have now turned their attention to Malcom and are keen on signing him on loan for the 2019/20 campaign.
Barcelona want Arsenal to sign him permanently, however, and are seeking to recuperate at least £35m for the 22-year-old.
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Malcom joined Barcelona for a £36.5m fee from Bordeaux last summer.
But he has struggled for game time at Camp Nou, making just 15 appearances last campaign.
Arsenal tried to sign Malcom on loan in January but failed to reach an agreement with Barcelona.
The north London club ended up signing Denis Suarez on loan but the move proved to be a disaster as the midfielder played just 95 minutes and returned to Camp Nou early due to injury.
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