Portuguese outlet Record, as quoted by Sport Witness, is reporting that Arsenal are interested in signing the 20-year-old at the end of the 2017-18 season.
The same article states that Benfica are hoping to secure at least £35m from the sale of the Portugal Under-21 international in the summer.
Arsenal are thought to be considering Dias as a potential long-term replacement for World Cup winner Per Mertesacker at the north London side.
According to the same story, Dias has a release clause of £52.5m in his current deal with the Portuguese outfit Benfica.
The Portuguese talent has scored three goals in 19 games in all competitions in his first season in Benfica’s senior squad.
Arsenal signed 20-year-old Greek defender Konstantinos Mavropanos in a £2.2m deal from PAS Giannina in the January transfer window.
The Gunners have conceded 41 goals in 30 games in the Premier League this season to raise his concerns about the Arsenal defence.
The north London side are in sixth place in the Premier League table and 13 points behind fourth-placed Tottenham Hotspur with eight games to go.
Arsenal lost 3-0 to Manchester City in the League Cup final last month.
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