The Gunners were linked in the summer but manager Arsene Wenger looked elsewhere as he strengthened other areas of his squad.
N'Zonzi has played 10 games for Sevilla this season but reports now claim he is unhappy.
The former Blackburn Rovers man was subbed during the 3-3 draw against Liverpool in the Champions League and he has reportedly fallen out with coach Eduardo Berizzo.
Rumours now suggest Arsenal may be willing to meet his £35million release clause as Wenger tries his best to get his side back in the Champions League places.
The 28-year-old has previously played for Stoke and Blackburn in the Premier League and he may be tempted to return to England rather than moves to Italy and Germany.