The Gunners are keen to add the 27-year-old to their ranks to challenge for honours in the English Premier League.
They are also keen to further strengthened their squad having already landed Pablo Mari, Cedric Soares, Willian, Gabriel Magalhaes and Dani Ceballos.
Arsenal are looking to offload Hector Bellerin, Ainsley Maitland-Niles, Sead Kolasinac and Mohamed Elneny and Emiliano Martinez to free up money to sign the Ghana international.
Manager Mikel Arteta is looking to rebuild a new Arsenal squad that fits his philosophy as he pushes to challenge for the Premier League title next season.
Arsenal have been left with little cash to fund a massive transfer for Partey- who is valued at €50 million.
The English side can only sign the player if they can activate his release clause of £45million - with the Gunners in no position to fund the transfer.
Arsenal have been long-term admirers of the 27-year-old, who has established himself as one of Atletico’s most important players in recent years.
Partey wants to join Arsenal this summer but the Gunners cannot afford him right now.