The Gunners look set to invest in a new striker as the January transfer window draws closer with manager Mikel Arteta keen on adding an attacking threat.
Newcastle United’s Alexander Isak and Sporting Lisbon’s Viktor Gyokeres were high on the shopping list however Italian outlet CalcioMercato reports the Gunners sent scouts to watch Retegui in action in November and have been highly impressed.
They were in attendance for Atalanta's 6-1 Champions League win at Young Boys with the striker bagging a brace which has helped him to 14 goals in all competitions this season.
He is the leading scorer in Serie A and could be a smarter move as Manchester United reportedly chases Gyokeres and Barcelona maintain their interest in Isak who scored a hat trick against Ipswich Town at the weekend.
Arsenal remain third in the Premier League following their 5-1 win at Crystal Palace on Saturday and despite their excellent performance, Arteta spoke recently about how the January window could be the perfect time to improve his side.
“The window gives us an opportunity to strengthen the team if we feel that is needed and we feel that we have the capacity to do that as well.
"We are on it and just have to assess the situation because it is changing every week. At the moment not for the better, but I'm positive that in a few weeks we're going to be in a better place."