Bennacer, 24, made just one appearance for the Gunners during the 2015/2016 season before joining Serie A side Empoli in 2017.
But Mikel Arteta seems keen to bring the Algerian back to Arsenal this summer, with the midfielder having impressed for Stefano Poli's side last season.
Bennacer made 40 appearances for AC Milan, scoring two goals and has solidified himself as a starter at the San Siro.
The Gunners are looking to revitalize their midfield options and Bennacer could form a formidable partnership with the likes of Thomas Partey and Granit Xhaka,
The Algerian has two years left to run on his current deal with the Serie A champions, who could suffer a huge blow should the midfielder depart.
The Rossenerri have already seen Franck Kessie depart for Barcelona as a free agent this summer.
Adding Bennacer to the list of exits from the San Siro would leave Milan in dire need of midfield acquistions.
Alongside interest in the Algerian, Arsenal are also reportedly keeping tabs on Leicester City midfielder Youri Tielemans.
Ismael Bennacer talks about his departure from Arsenal in 2017
The Algerian had only featured once for the Gunners senior team before heading to Serie A in 2017.
His impressive performances for Empoli led to AC Milan signing him for £14 million in 2019.
Benaccer has made 105 appearances for Milan and his stock as one of Europe's most coveted midfielders continues to rise.
The 24-year-old has commented on how his departure from the north London side came about, telling Goal:
"I still had a four-year contract with Arsenal, but I went where they really wanted me. I didn’t know Empoli but I accepted to go down from the Premier League to the Italian Serie B because that was the club that wanted me most of all."
"The reason why I went to AC Milan, I chose them for their history, but even more because his project was the best for me."