The Uruguay defender, 22, will be out of contract at the end of the 2022/23 season and his uncertain future has put the top-flight giants on red alert.
According to ESPN, Barcelona have made extending his deal a 'priority' and talks have begun between the club and the player's representatives.
However, if an agreement fails to be reached, Liverpool and Man United are two clubs said to be keen to snap up the promising centre-back.
The Premier League giants are thought to have been scouting the player since November 2021 and will make their move in the summer if he is still to sign a new deal.
Araujo was promoted to Barcelona's first team in the 2019/20 season and has become an important member of Xavi's squad this term.
If he was to move to the English top-flight, the defender would also add some feisty South American flair to the division - which he exhibited during Barcelona's ill-tempered 2-2 draw with Espanyol on Sunday.
Luuk de Jong struck an injury time equaliser to earn his side a point in what was a fiery Catalan derby at the RCDE Stadium, where Manuel Moralanes, Gerard Pique and Nico Melamed were all sent off.
But Araujo, who was substituted at half-time with an injury, also stole some of the headlines as he was involved in heated confrontation with Melamed as he left the pitch.
Cameras appeared to show Araujo goading the Espanyol midfielder by using his fingers to imply his side will be relegated to the second division at the end of the season.
And Araujo apologised for his actions in a post on social media afterwards, insisting he was 'not proud' of what he did.
"I want to apologise to all the people of Espanyol for the unfortunate gesture I made tonight," he wrote.
"Everything was the result of the tension experienced during a derby as disputed as today's.
"I consider myself a person who respects fans and rival clubs and that is why I am not proud of what happened."
Xavi also moved to apologise to Espanyol fans for Araujo's actions and insisted it was a heat of the moment mistake following the feisty derby.
"I haven't seen the incident", the Camp Nou boss said.
"We have to respect the opponent, the referee and the rival fans.
"We always have to be respectful, but the tension can sometimes make that hard.
"But I apologise, if this has happened, as it should not."