The Daily Mail reports that the north London side are keen on signing the defender this summer but would have to meet the £10m release clause 30-days before Fulham begin their season on August 7.
Arsenal have a busy summer of offloading and signing players in crucial positions and would have to conduct their business early if they are to meet the deadline.
The bargain transfer fee has also attracted attention from Newcastle United after Adarabioyo impressed in spite of Fulham’s relegation last season.
The 23-year-old Englishman played a key role in Fulham’s outstanding defensive record last season where they conceded a respectable 53 goals, with six teams conceding more.
Adarabioyo was able to form a solid partnership with Lyon loanee Joachim Anderson.
The Manchester City academy graduate’s stand-out performances for the Cottagers were backed up by his impressive stats.
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He recorded the most clearances in the Premier League (193) while registering the fastest sprint by a central defender in the league.
Arsenal manager Mikel Arteta is now rumoured to be on the look-out for a new central defender as he tries to add depth to the defence.
The Gunner boss is reportedly not convinced by William Saliba who was loaned out to Nice last season, while David Luiz’s departure leaves an opening for a new centre-back to come into the side.