After three seasons on loan at AC Milan, Brahim returned to Bernabeu last summer, and he proved to be an important squad player for Los Blancos during the 2023-24 campaign.
The 24-year-old scored 12 goals and registered nine assists in 44 appearances for Real Madrid in all competitions, including eight goals and seven assists in 31 La Liga outings.
The Morocco international also managed two goals and one assist in the Champions League, as Carlo Ancelotti's side lifted the cup once again earlier this month.
Brahim has another three years left to run on his contract at Bernabeu, but he is likely to find it more difficult to secure regular action next term, as Kylian Mbappe is arriving on a free transfer this summer.
Arsenal 'keen to sign Diaz this summer'
According to Fichajes, Arsenal are huge admirers of Brahim, and the club's head coach Mikel Arteta is pushing for the Gunners to sign the Spaniard in the upcoming market.
The report claims that Arteta is prepared to offer Brahim the chance to become an important player for a club that will again be looking to challenge for major silverware next term.
Brahim scored 18 times during his time at Milan, making 126 appearances in all competitions, but he was brought back to Madrid last summer as a replacement for Marco Asensio.
The attacker has now won two La Liga titles, two Spanish Super Cups and the Champions League during his time at Bernabeu, but he is now seemingly facing a big decision when it comes to his future.
How did Diaz fare during his time at Man City?
A move to Arsenal would not be Diaz's first taste of English football, as he joined Manchester City in 2015 from Spanish side Malaga as a 16-year-old.
Diaz debuted for Man City in September 2016, and he went on to make 15 appearances for their first team, scoring twice, before moving to Real Madrid in January 2019, six months before his contract with the Premier League champions was due to end.
The forward found it difficult to make the breakthrough at the Etihad Stadium, but it was in the very early stages of his career, and he showed flashes of his ability in Manchester.
The 2023-24 campaign was comfortably the best season of his career in terms of overall performance and contribution of goals and assists, and he would certainly be an exciting signing for Arsenal if the Gunners can get a deal over the line.