The Gunners are willing to part with Granit Xhaka and £40million for the Nigerian midfielder.
New boss, Mikel Arteta, has identified central midfield as one of the pressing problems in the squad and wants to address the issue next month.
Ndidi is having another fine season with Leicester and Brendan Rodgers’ team has only conceded 14 times so far this season.
Defensive midfielder Ndidi could help give Arsenal’s back four some protection, having done so for a Leicester team which has conceded just 14 goals this season.
The Super Eagles star has also chipped in with two goals from his defensive position.