Locatelli is currently with the Italian national team at EURO 2020, and has produced some impressive displays, including scoring twice in the 3-0 group stage victory over Switzerland.
The 23-year-old former AC Milan midfielder impressed for Sassuolo last season, making 34 appearances and scoring four goals as the Neroverdi finished in eighth place.
Arsenal could lose Granit Xhaka to AS Roma for next season and Mikel Arteta’s side have identified Locatelli as the ideal replacement for the Switzerland captain.
Securing Locatelli’s services will not be easy though for Arsenal, with Juventus also preparing a bid to land the midfielder.
“Arsenal have made an official bid for Locatelli," Sassuolo CEO Giovanni Carnevali told Sky Sport Italia. "They’re pushing hard to sign Manuel and it’s an important bid. We will see.
"Also Juventus want Locatelli and we’ve a special relationship with them. We’ve a new meeting scheduled with Juve.
“We are trying to leave the lad calm, so I haven’t spoken to him or his agents yet. We can think about Locatelli’s future, but above all we care about his present and that means Italy doing well at the Euros."
Locatelli has won 13 caps for the Italian national team and has scored three goals.