The Gunners reportedly had a £26.5m bid rebuffed by the Argentinian club in January, but the north London club are set to return to the negotiation table as they have a long-term plan for Pavon, who has scored 17 goals in 60 appearances for Boca.
Arsenal are in search of a replacement for Alexis Sanchez, who left for Manchester United in January in a swap deal with attacking midfielder Henrikh Mkhitaryan.
Following the Chilean's departure to Old Trafford, former boss Arsene Wenger used strikers Danny Welbeck and Alex Iwobi as wide men until the end of the season, and new boss Unai Emery is looking to fill the void in this position.
And the 22-year-old could become the Gunners' third signing of the summer, following the transfers of Stephan Lichtsteiner from Juventus and Bernd Leno from Bayer Leverkusen.
Pavon played a significant role in Argentina's World Cup campaign, making three substitute appearances in the group stages before starting his country's 4-3 defeat to France in the first knockout round.
And the 22-year-old, who has a £27m release clause according to Tycsports, has also attracted the interest of Barcelona, with Pavon's Argentinian teammate Lionel Messi reportedly keen on reuniting with his fellow attacking player at club level.
The winger joined current club Boca Juniors in a €1.3m move from CA Tellares in 2014, and while his current employers would make a serious profit from his sale, AS reports that the club are in no rush to sell one of their key players and will wait for the right offer to arrive.