AC Milan have had the 21-year-old on their radar since his youth days with the Gunners.
They remain keen, with his performances at Reims renewing their interest.
Balogun has impressed at the Ligue 1 club since he joined them on a season-long loan last summer.
The Arsenal academy graduate has bagged 16 league goals and one assist in 26 games.
No club in Europe’s top five leagues are on a longer unbeaten run (19) than Reims this term. Balogun has been crucial to his side’s brilliant campaign.
He is currently valued at around €25 million by the Gunners. However, that is expected to continue to skyrocket as he continues to impress.
Inter could be without both Edin Dzeko and Romelu Lukaku next term.
They are already preparing for life without the two strikers, and Balogun is firmly being watched.
Milan also want a new striker, with Zlatan Ibrahimovic set to leave and Divock Origi struggling.
Olivier Giroud is 36 and a long-term replacement is needed. Balogun fits the bill, but whether Arsenal plan to cash in remains to be seen.
Gunners manager Mikel Arteta has Gabriel Jesus and Eddie Nketiah as his striking options.
The likes of Gabriel Martinelli and Leonardo Trossard can also lead the line, so another striker may not be needed.
Balogun will not be short of suitors in the summer, but it is unknown if a move to Serie A appeals to him.
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