Gunners boss Unai Emery is a fan of the 21-year-old, who was a transfer target for the club in January.
But the French midfielder has emerged as a top target once again for Arsenal as Emery looks to bring in reinforcements.
The former PSG boss only has a transfer kitty of a round £40m this summer however after the club failed to quality for next season’s Champions League.
Previous reports claimed they could be priced out of a move for Nkunku with a £30m price-tag slapped on his head.
But, according to French publication L’Equipe, PSG have slashed the amount they want for him to just £13.5m.
The fall in price though has led to Champions League outfit RB Leipzig pondering a move which could rival the Gunners.
Nkunku appeared in 26 games for PSG last season, scoring three goals, but he is not seen as someone who will break through into the first team proper.
Nkunku is under contract in the French capital until June 2020, but his agent, Jose-Karl Pierre-Fanfan confirmed a summer exit could be on the cards as he searches for more first team football.
He said: “The playing time is insufficient. Christopher is open to a departure.”
Meanwhile, Arsenal look set to return to Celtic with a revised offer for left-back Kieran Tierney.
The Scotland international was subject to a £15m from the Premier League side which was duly rejected.
Reports suggest the north London outfit could come back with an £18m offer plus add ons.
Both Everton and Napoli are said to be interested in Tierney, who is open to leaving Parkhead this summer.
The 22-year-old has won the domestic treble three times in a row with Celtic.
While he is a boyhood fan of the Hoops, many believe that he is outgrowing life in the Scottish Premiership and that the time is now right for a move to the Premier League.