Arsenal rejected a £30m bid from fellow Premier League club Everton earlier this week. 90min understands that the Gunners do not want to see Iwobi go, but they will agree to a sale if a club was to offer them £38m for the 23-year-old.
Iwobi himself would land a bumper contract and be paid a weekly wage of somewhere between £120,000 and £150,000, should a late transfer happen.
The versatile star broke into the Arsenal first team under former manager Arsene Wenger during 2015/16 and scored two goals in his first two Premier League starts later that season.
He remained a fringe player under Wenger for two more years, but the arrival of Unai Emery last summer brought Iwobi into a more prominent role and he played in 35 of the club's 38 Premier League fixtures. In fact, no one at the club played more than Iwobi's 51 games.
However, the £72m record summer arrival of Nicolas Pepe from Lille, in addition to existing forwards Alexandre Lacazette and Pierre-Emerick Aubameyang, has brought a new level of competition for places ahead of the 2019/20 campaign.