Arsenal are seeking 5 million for defender Auston Trusty to leave permanently this summer.
The Blades are eager to sign Trusty, and would appear to prefer a loan deal for this season.
Per The Mail, Sheffield United have a limited budget, with manager Paul Heckingbottom wheeling and dealing.
Manchester United defender Axel Tuanzebe is another target for the Blades this summer.
For their part, Arsenal want to sell Trusty permanently, as they do not believe he is first team material.
The Gunners are also looking to raise funds for the possible signing of Brentford goalkeeper David Raya.