The 26-year-old Eagle came through the club’s academy, but supported Arsenal growing up.
Zaha has already left Selhurst Park once before returning from Manchester United and is now haggling for a move again.
Palace though are now ready to let their prized asset leave unless a club meet their £120m price tag, reports The Sun.
A massively inflated market in recent times saw the Eagles pocket £50m for 21-year-old full-back Aaron Wan-Bissaka despite him making less than 50 first team appearances.
And they are demanding a similarly huge fee before they consider letting Zaha leave south London.
Arsenal have already lodged a £40m bid for the winger, although that was swiftly rebuffed.
The Gunners were hoping to purchase the player and pay his fee at a later date with several payments made over five years.
Palace deemed the offer ‘embarrassing’ leaving Unai Emery’s side to think again.
Zaha is currently away with the Ivory Coast at the African Cup of Nations which should delay any deal that may occur.
Arsenal are looking to add a wide player to their attack during the summer transfer window, but have a relatively small budget of around £45m to work with.
They have tracked Bournemouth’s Ryan Fraser and Belgian Yannick Carrasco although talk of either joining has gone quiet.
Emery’s side relied largely on goals from Pierre-Emerick Aubameyang and Alexandre Lacazette last season and the Spaniard is looking to add more threats going forward.
It was defence however that was the Gunners major problem area having shipped more than a goal a game as they missed out of Champions League football.
Celtic’s Kieran Tierney and French teenager William Saliba are two players who are nearing moves to the Emirates, although both have some way to go before being completed.