According to Football London, with the Gunners unwilling to meet his £60million valuation, they are prepared to include one of their players as part of the bid.
It’s believed that academy graduates Joe Willock, Reiss Nelson or Eddie Nketiah could be involved in Arsenal’s offer for Maddison.
They are all known to be available for transfer at a suitable price as Mikel Arteta looks to reshape his squad ahead of a pivotal season.
Ben White arrived from Brighton and Hove Albion for £50million on Friday, joining fellow summer signings Albert Sambi Lokonga and Nuno Tavares.
Arteta wants to add a creative midfielder to the ranks to help increase the goal threat in his misfiring side, who finished eighth last season and missed out on a place in Europe as a result.
With little prospect of Martin Odegaard returning to the Emirates after his loan from Real Madrid came to an end, attention has turned to Maddison instead.
The 24-year-old playmaker arrived at Leicester from Norwich City for £20million in June 2018 and immediately took to life in the Premier League.
Calm in possession, and with an eye for a killer pass, he has helped the Foxes to flourish since Brendan Rodgers took over.
They have finished fifth in each of the last two seasons, as well as beating Chelsea in the FA Cup final earlier this year to lift the trophy for the first time in their history.
Despite several call-ups, Maddison has only won one cap for England, when he came on as a substitute in the 7-0 win over Montenegro in qualifying for the Euros.
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