The Gunners are being linked with a move to bring the 29-year-old Algeria international to The Emirates this summer as Unai Emery looks to strengthen his squad.
However, according to Sheth, the personal terms are proving to be a “stumbling block” in negotiations with the attacking midfielder, who is a free agent after leaving FC Porto.
Sheth has also revealed that West Ham United were also interested in signing Brahimi last summer, but they were unable to get a deal over the line.
Speaking on the Sky Sports Transfer Talk podcast, Sheth said: “We’ve learned that Arsenal are in talks with Brahimi.
“He would fit the profile for the type of player Arsenal want financially. The personal terms are the one stumbling block.
“West Ham were interested in Brahimi last summer but they couldn’t get a deal over the line due to finances.”
Brahimi scored 10 goals and made two assists in 33 league appearances for FC Porto last season.
Arsenal completed their first signing of the summer on Tuesday when they wrapped up a deal to land 18-year-old Brazilian teenager Gabriel Martinelli.
The Gunners ended last season without a trophy after they finished in fifth place and lost the Europa League final to Chelsea FC.
The north London side have not tasted Premier League glory since their famous unbeaten triumph back in 2003-04.
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