Reports linking the Gunners with the Uruguayan have gathered pace in recent weeks, with Arsenal boss Arsene Wenger believed to be keeping close tabs on his progress for the Serie A club.
Hernandez, who has scored seven goals in 27 league appearances for Palermo, will no doubt have set alarm bells ringing across Europe, as he plays with the idea of joining a major club in the near future.
However, the 20-year-old appears unfazed by the attention and is noticeably content with his current situation in Sicily.
"Arsenal want me? For now I am thinking about Palermo. Afterwards, if there is the chance to join a big club we will see," the forward told Mediaset Premium.
"My first experience in Italy was with Genoa when I had a trial there, but they never kept me on because I had some heart problems.
"But Palermo believed in me and they ensured I had surgery."
The addition of the Uruguayan international may come as a surprise to the Emirates Stadium faithful following the arrival of Marouane Chamakh in the summer.
But with Robin van Persie struggling with injury once again, Wenger may move to bring in an extra striker to help him build for the future.
Hernandez recently represented Uruguay at the Under-20 World Cup, scoring one goal as the South Americans failed to proceed past the last-16 stage.
He has also gained one cap for the Uruguayan senior side in a friendly against Angola, where he was also on the scoresheet.
By Elliott Binks
