According to the Mirror, the Gunners plan to offer the 24-year-old a route out of Old Trafford despite his recent loss of form.
Rashford has lost his place in United’s first team and was omitted from England’s squad for the friendlies against Switzerland and Ivory Coast.
The Gunners need to boost their forward ranks, and Rashford could be a useful option for manager Mikel Arteta.
Rashford has fallen out of favour at Old Trafford in recent months, and a change of scenery could be what he needs to reignite his career.
He came in for criticism from fans over his performance against Atletico Madrid in the Champions League – the latest in a string of underwhelming displays.
Rashford has made just nine starts in the Premier League this season and scored five goals across all competitions.
Arsenal could be the ideal place to kickstart his career, particularly if Arteta used him in a central role.
With Emile Smith Rowe, Bukayo Saka and Martin Odegaard supplying Rashford, the Gunners could have a formidable attack next season.
Whether it would make sense for United to sell Rashford to one of their rivals is open for debate, although the transfer fee would come in handy to fund their own business.
Things appear to have gone sour for Rashford at United, but he is still a top-class player when everything falls into place.