Arsenal explored a deal for Danilo this summer, however, it was anticipated that negotiations would be tough to negotiate due to the Brazilian side's reluctance to sell.
However, football.london says interest could be reignited in January. It's believed Palmeiras did not want to lose Danilo at the time due to their involvement in the Copa Libertadores semi-finals, while the early closure of the Brazilian transfer window meant it was not possible for them to bring in a replacement.
Technical director Edu is a long-term admirer of Danilo having first shown an interest in the midfielder earlier this year.
His ability to operate as a progressive No.6 matches the profile of player the club is looking for, with the recent injuries to Thomas Partey and Mohamed Elneny highlighting the shortage of defensive-minded options available to Mikel Arteta.