Tavares joined the Gunners in a £8m deal from Benfica in 2021, but he has failed to establish himself in Mikel Arteta's side, making just 28 appearances across all competitions.
After being deemed surplus requirements, Tavares was sent out on loan to Marseille last season, where he featured in 39 games and scored six goals.
Having returned to Arsenal, O Jogo are reporting that Tavares is now attracting interest from Wolfsburg and Werder Bremen.
With Tavares under contract until the summer of 2025, the Gunners are hoping to recoup €15m (£12.9m) for the 23-year-old.
Having played in Portugal, England and France, a move to the Bundesliga would present the left-back with a new challenge.
Elsewhere, Leicester City have reportedly stepped up their efforts to sign Chelsea midfielder Cesare Casadei on a loan deal.
Despite adding Harry Winks to their ranks, Leicester are still keen to strengthen a midfield that has been weakened by the departures of James Maddison, Youri Tielemans and Nampalys Mendy.
Chelsea youngster Casadei has been identified as a potential option for the Foxes after impressing during the Under-20 World Cup for Italy, scoring seven goals in as many matches to help his country reach the final and earn the Player of the Tournament award.
According to journalist Fabrizio Romano, Leicester are now pushing to sign Casadei from Chelsea on a season-long loan deal.
They are believed to be facing competition from Serie A side Genoa, who are also looking to agree a loan move for the 20-year-old.
Casadei, who participated in Chelsea's pre-season tour of the USA, spent last season on loan at Reading, where he scored one goal in 15 matches.
Nottingham Forest, meanwhile, are reportedly prepared to submit an official offer for young Corinthians defender Murillo.
With Forest set to be beaten by Al-Hilal to the signature of Roma's Roger Ibanez, the Tricky Trees have turned their attention to other targets.
They have seemingly identified Murillo as a potential option after being impressed by his performances at Corinthians, where he has made 28 appearances this season.
According to journalist Jorge Nicola, via Sport Witness, Forest are preparing to submit a €15m (£12.9m) bid for the 21-year-old.
Corinthians have already rejected a €13m (£11.2m) bid from Serie A champions Napoli, who have since signed Murillo's compatriot Nathan from RB Bragantino.
With over two years left to run on the player's contract, Corinthians are believed to be looking for a €20m (£17.2m) fee.