Reports in France state that Monaco have made contact with the Gunners in regard to the centre-back.
Mustafi has endured a tough time at the Emirates since his £35m arrival from Valencia three years ago.
A series of costly blunders in high-profile games has seen him labelled a liability by the Arsenal fan base.
The World Cup winner was even booed by home supporters as he came off the bench against Lyon at the weekend.
French publication L’Equipe claim the north Londoners have slapped a £27m price tag on Mustafi, 27.
Arsenal fans on social media reacted excitedly to the news, some even offering to drive him to the Ligue 1 club.
“If we manage to get €30m for Mustafi, then surely it’s our best window in the Emirates Era,” tweeted one fan.
Another fan seemed in disbelief at the news, adding: “£30m would be heavenly, if we could find someone to replace him.”
“We accept vouchers, and depending on the time of day we can also accept food,” joked a third Gooner.
“Is there meant to be a decimal point? Does he need a lift? I’ll drive him,” bantered another stunned supporter.
“OHHHHHHHHH YESSSSSSSSSSSSSS, I SWEAR YOU’LL NEVER SEE ANYTHING LIKE THIS EVER AGAIN. DRINK IT IN,” wrote a fan, referencing Martin Tyler’s commentary for Sergio Aguero’s famous Premier League winning goal of 2012.
Arsenal boss Unai Emery looks to be on the verge of adding Nicolas Pepe to the signings of Wilfried Saliba, Gabriel Martinelli and Dani Ceballos.
The Lille winger is set to become Arsenal’s record transfer, with a £72m deal imminent should he pass his medical today.
But with Saliba returning to Saint-Etienne on loan next season, Arsenal are still in the market for defensive signings.
Money raised from a potential sale of Mustafi would hugely help in the north Londoners’ quest to sign Celtic’s Kieran Tierney.
Starsport understands that Arsenal have met the Scottish Champions’ valuation of the left-back, but the Hoops want a larger percentage of the £25m fee up front.