The 26-year old Portuguese is out of sorts at Old Trafford after a brawl with manager Sir Alex Ferguson and a deadlock in contract extension talks, with top clubs across Europe ready to bid for him.
Arsenal boss Arsene Wenger is looking to strengthen is squad after slipping down the league table. However, Nani has not played since he was substituted during the Champions League clash at Braga early last month.
The Portuguese feels his future could be elsewhere as Ferguson sticks to wingers Ashley Young and Antonio Valencia. But he also had a training ground bust-up with reserve team midfielder Davide Petrucci, seriously damaging the relationship with the club.
Meanwhile, Wenger admitted he is frustrated over contract rebel Theo Walcott and has been eyeing a move for promising Crystal Palace talent Wilfried Zaha. The 20-year old is being chased by Manchester United, Liverpool and Tottenham Hotspur.
Wenger revealed earlier in November that he would have nearly £40 million funds to spend during the winter transfer window. But the Frenchman has too many targets to follow up in January.
Arsenal have been linked with a shock move for Chelsea veterean Frank Lamapard, who is expected to leave at the end of season, while Spain duo Adrian Lopez and Fernand Llorente are the striking options for Wenger.
West Ham United midfielder Mohamed Diame is also linked to the Gunners. The senegal international has a £3.5million release clause. But the deal could be off after Diame suffered a hamstring injury in the 2-3 loss to Liverpool on Sunday, leaving him doubtful for nearly three months.
Top of the targets this season is striker Klass-Jan Huntelaar from Schalke. The Dutch strikers contract is due to end in the summer and the Bundesliga giants are not willing to let him go for free. The two clubs have been in contact over a possible £5 million deal in January.