His contract with promotion-chasing Championship outfit Leicester expires at the end of the season and he is yet to negotiate an extension, as he waits to see if the Midlands club seal their return to the top flight.
A source close to Arsenal told Footb-info that boss Arsene Wenger wants stronger competition for current number one goalkeeper Wojciech Szczesny next season, with Schmeichel and Stoke City shot-stopper Asmir Begovic on his radar.
The player is currently only permitted to negotiate a free transfer summer switch with overseas clubs, but he can talk to English suitors when his contract expires in June.
He is the son of Manchester United icon Peter Schmeichel, who was involved in several famous battles with the Gunners during his own playing career.
