The Gunners have been linked with a potential move to sign the Dalian Yifang winger in the January transfer window to improve Unai Emery’s attacking options.
Carrasco moved to the Chinese Super League club in a big-money deal from La Liga side Atletico Madrid in 2017.
However, the Belgium international is thought to be eager to secure a return to European football, with England top of his list.
Arsenal may be limited to loan deals in the current window but the Gunners could struggle to meet Carrasco’s wage demands should a temporary deal be a possibility this month.
While the Belgian forward’s €11m-a-year salary could be a stumbling block, Arsenal would also have to make a substantial bid in the summer to make the deal permanent.
Sky Sports News reporter Sheth warned the Gunners that the Belgium international could command a significant transfer fee.
“He won’t come cheap,” Sheth told the Sky Sports Transfer Talk podcast.
“If Arsenal are in a situation where they can only do loans, will that change in the summer? He moved to Atletico Madrid for £27m.
“You would think Dalian Yifang would want to recoup all if not most of that transfer fee if they were to allow him to leave.”
Carrasco established himself as an exciting attacking talent on the European stage during three seasons at Atletico Madrid under Diego Simeone.
Arsenal goalkeeper Petr Cech confirmed that he will retire at the end of the season to leave the Gunners with a position to fill.
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