Portuguese newspaper O Jogo, as quoted by Metro, is reporting that the north London club have made a “firm” offer to try and bring the 23-year-old winger to The Emirates this month.
The same story says that the Gunners will only be able to make loan deals this month due to financial restrictions and that Martins has emerged as a target.
According to the same article, Atletico Madrid are trying to sign striker Alvaro Morata from Chelsea FC and may need to offload a forward to make space for the Spaniard in their squad.
Martins, who only joined Atletico Madrid from Sporting Lisbon in July last year, has been limited to just one start in La Liga for the Spanish side so far this season.
Indeed, he has only played 224 minutes in the Spanish top flight so far this term after failing to nail down a regular spot in the first team.
Meanwhile, Arsenal moved back up into fifth place in the Premier League with a 2-0 win over Chelsea FC at The Emirates on Saturday night.
The Gunners will host Manchester United in the fourth round of the FA Cup on Friday night.
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