The 21-year-old right-back has been very impressive this season which has forced Palace to slap a £40 Million valuation on the youngster, a fee that could prove to be too much for the Gunners at this time.
Everton and Bayern Munich have already been linked with the England Under-21 international but they were never going to be the only interested parties and a competition for the defenders signature is an almost certainty.
The problem for Arsenal is that they have very stringent financial controls in place right now, they were unable to splash out big money for any top signing in January and questions will be asked about their intentions to spend over £40 Million for a 21-year-old player.
Wan-Bissaka has still to earn a call up to the England senior team but that is expected to happen sooner rather than later and in the event he does become a regular England squad player his value could increase even further.
The Gunners do have issues in defence with Hector Bellerin a long term absentee and Stephan Lichtsteiner showing that he is not really Premier League standard, but it is hard to see them spending the sort of money required to find a long term solution to their defensive woes.