According to The Sun, the 36-year-old experienced right-back is willing to accept a £200,000-a-week wage to link up with his former manager, Unai Emery at Emirates.
Alves has also attracted interest from Manchester City, Tottenham and Inter Milan in recent weeks.
He is currently on a free agent after he left Paris Saints-Germain last month.
The former Juventus and Barcelona star is currently on holiday after winning the 2019 Copa America with Brazil earlier this month.
Speaking on his future, Alves recently said: “Now I’m free, but I still have a lot to accomplish in my career.
“The only thing that I can say is that the club that sign me will sign a true champion.”