Jesus, 25, has been linked with moves to both the Gunners and Spurs this summer with both sides eyeing attacking reinforcements. The Times reported that the Brazilian striker has been offered to Antonio Conte's side, with the Lilywhites having qualified for the UEFA Champions League.
But Mikel Arteta's Gunners have always been the frontrunners in the race for the 25-year-old. They appear to have been boosted by the latest developments in the transfer saga.
According to the Daily Mail, Tottenham have decided to 'back off' from their pursuit of Jesus, instead turning their attention to Leeds United winger Raphinha.
Arsenal will now have huge encouragement to seal a deal for the Manchester City star.
Football London reports that the player's representatives have been in London to hold talks.
Jesus has been at City since 2017 having joined from Brazilian side Palmeiras for £28.8 million. The Brazil international has made 236 appearances for the Cityzens across competitions, scoring 95 goals and contributing 46 assists.
He seems keen to move on this summer to gain more first-team opportunities and is exactly the profile of the attacker Mikel Arteta is targeting.
Alexandre Lacazette will leave the club following the expiration of his contract with the Gunners and rejoin Ligue 1 side Lyon on July 1. The Frenchman was criticized throughout last season for his poor showing in front of goal, managing just six goals in 35 appearances.
Arsenal may have to end their pursuit of Raphinha with Tottenham pulling away from the race for Gabriel Jesus
Tottenham are one of many European sides contending for the signature of Leeds United star Raphinha this summer.
Arsenal are also in the race alongside Chelsea and La Liga giants Barcelona.
Athletic reports that Spurs haven't viewed Raphinha as a first-choice option.
But the latest development with regard to the side stepping away from the chase for Jesus may change that.
Meanwhile, Raphinha's preference is to join Barcelona but the Catalan giants' financial complications are jeopardizing a potential move. Chelsea stand as the second preferred option for the Brazilian but Spurs may now be increasing their interest in the Leeds star.
Raphinha made 36 appearances for Jesse Marsch's side last season, scoring 11 goals and providing three assists. He's not the only Brazilian that Tottenham are showing an interest in as they also have Everton star Richarlison on their wishlist.