The Brazilian defender joined the Gunners in January 2015 from Villarreal but has struggled to adapt to the extra physicality provided by the Premier League.
Having fallen down the pecking order at the Emirates, reports are suggesting the North Londoners would be willing to offload him and would be open to making a slight loss on the £11.3m they paid for him.
Inter Milan's Jeison Murillo and Porto's Ivan Marcano are also thought to be options for Los Che and boss Marcelino has admitted that the 27-year-old fits the profile of what his club are looking for in the current window.
"I think they are possible,” he is quoted as saying by the London Evening Standard. "We're talking about important players who already know our league.
"They speak Spanish, and that's important, so their adaptation would be very quick."