To this effect, the Gunners manager Unai Emery has been on the lookout for his replacement and he has finally found one, that's according to reports.
Manchester United have also supposedly been offered the chance to sign the former Atletico star.
The 25-year-old is also capable of playing a more defensive role and has been used as a wing-back by Roberto Martinez for Belgium's national team.
Carrasco has quick-feet and is a pretty useful player to have during the transition as it's hard to stop him when he is driving at the opposition half.
The speedy winger is in his peak years and with Atletico Madrid, he had a mammoth release clause of €100million (AS) in his contract before he made a decision to leave for Yifang, who struggled big time last season.
Aside from that, the Belgian global has raw pace, which makes him a threat on the counter while his ability to play quick passes in the final third certainly tunes in well with Arsenal's high-tempo game in attack.
The claims appear to have been made by a Sky Italia journalist on TV with an audio clip posted online but it remains to be seen whether Arsenal will manage to get a deal agreed for Carrasco's signature.
However, Arsenal could struggle to convince Dalian Yifang to sell, with the side having paid £27m to sign Carrasco just a year ago. United would surely have to pay a decent fee to hire his services.