The Belgian has one year to run on his deal with the Foxes and talks over an extension stalled last year, with Tielemans minded to leave the club.
The 25-year-old is the Foxes’ record signing following his £32m move from Monaco in 2018 and Brendan Rodgers is desperate to keep the former Anderlecht skipper.
Liverpool and Manchester United have both shown interest in Tielemans in the past but those links have cooled, with Arsenal now the frontrunners for the midfielder’s signature.
Tielemans was open to a move to Arsenal but he was hoping the Gunners finished in the top four, as he had hoped to join a Champions League side.
However, the Telegraph say Tielemans is still keen on joining Arsenal and that Arteta is pushing his board to submit a £25m bid for the midfielder.
Mohamed Elneny is expected to sign a new one-year extension following his strong performances in the final stretch of the season but Arteta remains keen to strengthen his midfield.
Tielemans’ box-to-box style is attractive to Arteta, who feels he has two of the three midfield positions solved in Thomas Partey and Martin Odegaard.
Arsenal could face competition from rivals Tottenham for Tielemans’ signature, with Antonio Conte a huge admirer of the midfielder.