According to several news sources, the former England manager and current manager of German side Wolfsburg is very interested in signing the Arsenal central midfielder for around £11 million in the January transfer window.
It is thought that Wolfsburg are prepared to let their centre back, Simon Kjaer leave for Chelsea, who are keen to strengthen their defence with the £7 million signing so that Wolfsburg can then use the money in the Kjaer sale to help facilitate a move for Denilson.
The 22 year-old has played only 8 time in the Premier League for Arsenal this season. His lack of game time may persuade him to move away from Arsenal instead offighting for a first team place against the likes of Cesc Fabregas, Samir Nasri, Tomas Rosicky and Jack Wilshere - who can all and have all played in a similar position to the Brazilian. Aaron Ramsey is also likely to return from his loan spell at Nottingham Forest in January, which would leave Denilson in the midst of a massive fight for a first team place.