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The Benfica ace is on Arsenal’s radar as they look to bolster their defence this summer.
Arsenal have been poor at the back and are losing Per Mertesacker when his contract expires.
They also tried to replace Shkodran Mustafa last summer but failed to bring anyone in.
And reports in Portugal last week claimed Dias on their shortlist.
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And Record now claim Benfica are ready to sell the 20-year-old if a bid of £34.9million (€40m).
Arsenal are unlikely to play Champions League football next year unless they can win the Europa League.
They are currently sixth in the Premier League and are already 13 points behind fourth place Tottenham.
And they face CSKA Moscow in the Europa League but Atletico Madrid remain favourites for it.
Arsenal are expected to undergo big changes this summer with Arsene Wenger’s future still in doubt.