The Gunners are looking to add a new centre-back this summer as they aim to challenge for major honours next term.
They are keeping tabs on Crystal Palace’s Marc Guehi, having been impressed by the youngster’s progress in south London.
The Evening Standard are now reporting that Sutalo has also caught their attention.
Arsenal are scouting him and could make a move in the upcoming transfer window.
Dinamo reportedly want around £18 million to let their star player leave, but formal talks haven’t taken place between the two clubs.
Sutalo has been earning rave reviews with his performances in Croatia. He has made 32 appearances in all competitions this season, netting three goals.
Arsenal currently have two brilliant centre-backs in the form of William Saliba and Gabriel Magalhaes.
Saliba sustained a lower back injury in March and has been sidelined since. The Frenchman’s absence has been a big blow for the Gunners as their defensive performances have fallen off considerably.
His replacement Rob Holding has been unconvincing with his displays.
They need to boost their defensive ranks, but a deal for Guehi could be expensive given he has three years left on his contract at Selhurst Park.
Tottenham Hotspur are also interested in the Englishman, but reports suggest Palace could demand over £50m to let him leave.
By contrast, Arsenal could secure Sutalo’s services for less than half that fee.
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