Portuguese newspaper Record is reporting that the north London side are sending scouts to watch the 20-year-old in action at this summer’s European Under-21 Championships.
The same story claims that Arsenal are weighing up a potential move for the attacker as Arsene Wenger looks to bolster his squad ahead of next season.
It is also claimed in the article that the Serbian has a huge £52.5m release clause in his contract with Benfica.
The Serbia international has been linked with a move to the Premier League in the past and played 23 games in all competitions for Benfica last season, scoring one goal and making three assists.
Arsenal are believed to be on the lookout for a number of key signings this summer as Wenger prepares his team for next season.
The Frenchman was heavily criticised last term as Arsenal struggled to produce consistent form in the Premier League and eventually ended up fifth in the table.
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