Gabonese international Pierre-Emerick Aubameyang has been linked with a move to Manchester United, but the Gunners are under no pressure to sell despite speculation that they had just £40m to spend this summer.
Journalist David Ornstein said: “[Nicolas Pepe] Tracks back, works hard, which Unai Emery will like.
“He can also operate in a two-man strike-force if needed in a 4-4-2 formation.
“It’s a pretty mouthwatering prospect that he will play in the same team as Aubameyang, Lacazette, potentially [Mesut] Ozil and others.
“I’m told that this will not mean a significant departure.
“The likes of Aubameyang, Lacazette, will not be leaving Arsenal this summer to help finance this deal.”
Arsenal managing director Vinai Venkatesham had earlier reassured fans that the club had significant funds to spend.
He said: “I don’t recognise this £40m figure, I have read it a lot. That doesn’t come from us, that doesn’t come from the club. The numbers never come from us.”