Welbeck has fallen down the pecking order at the Emirates in recent months following the arrivals of Pierre-Emerick Aubameyang and Alexandre Lacazette.
The striker is out of contract at Arsenal at the end of the current season with the Gunners yet to offer him a new deal.
Arsenal midfielder Aaron Ramsey’s contract also expires in the summer with plenty of clubs interested in the Welshman.
And the Sun report Arsenal are reluctant to allow Welbeck to leave for nothing in the summer, just like Ramsey could.
The Sun also report that Crystal Palace are weighing up a £10million bid for the former Manchester United striker with Eagles boss Roy Hodgson believing Welbeck could be key to success for Palace.
Though Welbeck’s opportunities for Arsenal have been limited this term, he has bagged five goals from the 13 appearances he has made.
Two of them strikes have come in the Europa League with Arsenal continuing their quest on the continent by welcoming Sporting Lisbon on Thursday (8pm).
The Gunners have enjoyed a resurgence under new boss Unai Emery, being unbeaten in their last 14 matches, winning 12 of them.
That included a 1-1 draw with Liverpool at the weekend after Lacazette’s late leveller.
Emery took over at the Emirates during the summer following the departure of boss Arsene Wenger.
And former Liverpool midfielder Danny Murphy is impressed by the boldness of Emery’s attacking approach.
“Energy and fitness was great,” he said on Match of the Day.
“They took a risk, played with bravery, full backs bombing on, knowing [Sadio] Mane and [Mohamed] Salah would stay high like they did at Tottenham not so long ago and they destroyed Tottenham.
“Brave to do that considering they lost to City and Chelsea but the Arsenal team’s progression has been much quicker than I expected under Emery.”