The Gunners have been considered as front-runners for the Argentine striker since it emerged that he could be tempted into a move away from the Spanish capital.
Arsene Wenger is believed to have been given the green light to bring established names to Emirates Stadium this summer, with Manchester United's Wayne Rooney also linked to Arsenal.
However, Juventus are rivalling the North London club in the race to sign 25-year-old Higuain, who scored 16 goals in 28 La Liga appearances last season.
According to speculation, Higuain had agreed personal terms with Arsenal but his father, Jorge Higuain, has indicated that his son could also still move to Juventus.
"Nothing has been signed yet but I can assure you there are advanced talks between the clubs," said Higuain senior in the Mail on Sunday.
"We wouldn't arrange any personal contract before the clubs agree for the transfer. I'm aware Arsenal has made a strong offer, as well as Juventus."