The Gunners are keen on Zaha but his £80million asking price will rule them out of the running.
Palace is determined not to let the 26-year-old go on the cheap but Unai Emery’s budget will be around the £40million mark if they fail to reach the Champions League.
They are likely to wait until later in the window before making their move - and seeing if Palace budge on their valuation.
Zaha has told Palace he wants to leave for a Champions League club - and Emery needs to win the Europa League to make it.
Arsenal is also keen on getting homegrown talent into a squad that will lose Aaron Ramsey on a free to Juventus.
Zaha has switched countries to play for Ivory Coast but he is still classed as homegrown on Premier League quotas.
Chelsea is looking to spend big on a marquee signing this summer but they are searching for a No9.
Zaha fits the bill for Arsenal, who could offer Callum Chambers, Carl Jenkinson or Reiss Nelson in part-exchange for any deal.
By Thesun.co.uk
