Arsenal target's come-and-get-me plea as he confesses: I want a transfer this summer
The former Atletico Madrid man swapped La Liga for the Chinese Super League in February 2018.
Arsenal tried to sign the Belgian winger on loan in the January window but were unable to agree a fee with Dalian.
And although his transfer to Asia did not cost him a place in his country's World Cup squad, Carrasco has since fallen out of favour at international level and feels ready to return to the European game.
"I would love to return to Europe. A lot of clubs were interested in me," he said.
"We tried to find a solution in January that would enable me to leave Dalian Yifang. But I can understand the club's thinking. They wanted me to stay.
"I still feel OK in China. But I have lost my starting place in the Belgian national side. This can happen with a team of their quality.
"With the level of competition there will always be times when you don't get to play a lot."
Arsenal's top-four challenge continues with Newcastle's visit to the Emirates Stadium on Monday.