The Gunners reportedly made three bids for the midfielder on deadline day, but the Villans rejected all of them despite being aware of his contract situation. If he doesn't extend his stay at Villa Park, Luiz could leave as a free agent in the summer of 2023.
The player was apparently valued at £40 million but the Birmingham-based outfit could have to bring down their valuation in the near future. If he doesn't pen a new deal, January 2023 will be the only time they can hope to make money from his transfer.
Chelsea will have to be wary of Arsenal, however, as it is not likely they will end their interest in the player. After all, the north Londoners' hat-trick of bids last summer is a clear indication of how much manager Mikel Arteta wants him at the Emirates.
Moreover, Arsenal did not sign a central or defensive midfielder in the summer, with playmaker Fabio Vieira their only addition in midfield.
With that in mind, missing out on him earlier this month could prove to be a blessing in disguise if they manage to sign him on a free transfer in 2023.
Similarly, Chelsea could benefit from his addition to their aging midfield. N'Golo Kante (30) and Jorginho (31) are not getting any younger and are both out of contract next year.
The Brazil international has featured in seven games for Villa this season across competitions, scoring two goals, including one against Arsenal in a 2-1 Premier League loss on August 31.
Chelsea and Arsenal among teams scouting Bayer Leverkusen winger
According to 90min, representatives from Chelsea, Arsenal, Tottenham Hotspur, Manchester City, and Newcastle United were present at BayArena to watch Bayer Leverkusen winger Moussa Diaby play against Atletico Madrid.
Their reports would have had a glowing assessment of the French winger as he scored the second goal in Bayer Leverkusen's 2-0 Champions League win on September 13.
Known for his dribbling ability and lightning speed, the 23-year-old attacker is just getting started on the big stage.
However, he has not been called up by manager Didier Deschamps to the French national team this month. The former Paris Saint-Germain (PSG) winger has registered one goal and two assists in 10 matches this season.