The attacking midfielder is being linked with a move to the North London club this summer.
The Gunners already added Fabio Vieira from Porto, who plays in a similar position.
However, UOL states that Arteta has personally approved the Paqueta chase to technical director Edu.
The latter has been talking with Paqueta’s representatives about his contract and other matters.
Arsenal and Lyon have also held talks, but there is no agreement on a fee as yet.