The centre-back, who previously left the Blues for French side Paris Saint-Germain, was brought back by the club in 2016 and was instrumental in their league title capture. Yet he was made a pariah by Antonio Conte last term and hardly got a look in, with a series of injuries claimed to be the reason for his lengthy absence.
The Brazilian is unlikely to remain at Stamford Bridge this season, especially if Conte retains his position as head coach (something which is also very unlikely), and several clubs are understood to be keen on offering him a lifeline.
According to le10sport.com, the Blues' London rivals have taken up an interest in Luiz and have already made an offer of €20m for the man who was once the world's most expensive defender.
Chelsea haven't been moved by the offer, per the report, and have also turned it down. And while Arsenal have not decided to approach their counterparts with a fresh proposal, they could return with a higher quote in the near future.
The Gunners are now under new management, with former Sevilla and PSG boss Unai Emery stepping in as Arsene Wenger's replacement this summer. But Chelsea's future is still shrouded in uncertainty as Conte remains boss while they attempt to obtain Maurizio Sarri's signature.
The Blues appear in no rush to make changes to their squad or their coaching staff at the moment, but we can expect to see some movement in the coming weeks.