Arsenal would reportedly not have to pay compensation to Napoli should they appoint Carlo Ancelotti as their new manager.
The 60-year-old was sacked by Napoli earlier this week despite leading the Italian side into the last-16 stage of the Champions League.
The Gunners have since been strongly linked with a move for the Italian, while Everton are also believed to be firmly in the hunt for the experienced head coach.
Ancelotti is allegedly set to arrive in England over the next 24 hours to hold talks with the Toffees over becoming the official replacement for Marco Silva.
However, according to the Daily Mail, Arsenal have the former Chelsea manager in their sights as they look to fill the position currently held by Freddie Ljungberg on an interim basis.
The report claims that, contrary to suggestions, the London club would not have to pay compensation for Ancelotti, who is picking up wages from Napoli until the summer or when he takes a new job.
The Gunners will be looking to make it back-to-back Premier League wins when they welcome Manchester City to the Emirates Stadium on Sunday afternoon.
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