However, the Gunners have seen their initial enquiry rejected by Aston Villa.
The value of the opening bid is unknown, although the Gunners are ready to return with an improved offer and are willing to pay up to £60million.
talkSPORT understands boyhood Arsenal fan Watkins would be open to the move if the clubs were to agree a fee.
Meanwhile, Villa are not happy with the timing of Arsenal's approach as they prepare to face Celtic in the Champions League.
The club are not planning for the departure of Watkins during the current window but now face a fight to keep both their leading frontmen.
READ MORE ARSENAL NEWS
Arsenal starlet Lewis-Skelly has suspension rescinded as Arteta condemns abuse of referees
Inside Arsenal's striker search from Isak to Sesko, Vlahovic and Mbuemo
Jhon Duran has agreed terms with Al Nassr, although the Saudi Arabian club could sign Bayer Leverkusen's Victor Boniface instead.
A deal for the 29-year-old striker is not easy, though with Premier League clubs having until 11pm on Monday to complete their business before the transfer window closes.
Watkins, who joined Villa in 2020, still has over three years remaining on his contract.
The extension he signed in October 2023 also includes the option of a further year through to the summer of 2029.
Most read in Football
Steven Gerrard set to leave role as one of world's highest-paid managers
David Beckham reveals Lionel Messi's next move after Inter Miami
Man United transfer latest - The truth behind Rashford and a 'messy' Garnacho situation
Darren Bent names Premier League club that would be perfect fit for Paul Pogba
So far this season, Watkins has scored ten goals in 23 league appearances for Unai Emery's side.
The England international has also provided five assists across those matches.
Arsenal's move for Watkins has been endorsed by Jimmy Floyd Hasselbaink.
The former Chelsea man told Drive: "I can see why Arsenal are going after him. Arsenal need goals, he loves goals.
"They need a striker and there aren't many strikers around anymore, it's unfortunate that I have to say that!"
"I can't see it happening. If it does it shows Villa have no ambition to get into the top four again.
"They're still in the Champions League and they're going to want to keep all their best players."
Mikel Arteta has been left with limited options in the centre forward position following Gabriel Jesus' anterior cruciate ligament injury.
The Brazilian's lengthy lay-off has ruled him out for the season, with a return not expected until at least November.
As a result, Kai Havertz is the only senior striker available for the Gunners, but he is often deployed in a deeper role by Arteta.
This has seen Arsenal strongly linked with adding to their striker options in recent weeks.
The Gunners have shown an interest in Newcastle's Alexander Isak, who was previously a target during his time at Real Sociedad.
A move for the Swedish forward would have to wait until the summer, though.
Read More on talkSPORT
Israel Adesanya sends message to Mohamed Salah after Liverpool star uses celebration again
'I warned her' - McCoist had simple advice for Laura Woods before she gave birth
Simon Jordan SLAMS Jim White for claiming that Liverpool's Mo Salah is MORE prolific than Arsenal legend Thierry Henry
It is a similar scenario for both Benjamin Sesko and Viktor Gyokeres, who are amongst the most-wanted strikers in Europe at present.
January moves for both Bryan Mbuemo and Dusan Vlahovic also look unlikely as the deadline approaches.