Paddy Power have the Gunners priced at 5/2 to be Balotelli's next permanent club, while Chelsea have drifted out to 10/3 after being the 3/1 frontrunners last month.

The Italy international was linked with a move to the Emirates Stadium in February, with reports claiming that Arsenal's sponsors Puma could help fund a £25m transfer. The 23-year-old has endured a frustrating campaign with Milan, who are currently in the bottom half of the Serie A table, but has managed to score 12 league goals this term.

Arsenal boss Arsene Wenger is expected to enter the transfer market for a new striker this summer, with Nicklas Bendtner set to depart the club at the end of the season. Yaya Sanogo is still developing, leaving France international Olivier Giroud as the club's only reliable frontman.