The Gunners have made an impressive start to the season, with their defensive organisation providing a strong foundation. However, Arteta is keen to improve the team's attacking output and believes another forward could give his squad greater variety during the second half of the campaign.
According to The Independent, Baena is among four players being considered by Arsenal, alongside Bournemouth's Junior Kroupi, Real Madrid's Endrick and RB Leipzig winger Antonio Nusa.
Kroupi is understood to be the preferred option, but Bournemouth are unlikely to sanction his departure in January. That could encourage Arsenal to explore alternative targets, with Baena an attractive possibility.
The Spain international is naturally a left winger but is capable of operating in the attacking half-spaces, where his technical ability and movement allow him to create opportunities for team-mates or cut inside to shoot.
His creativity is a major part of his appeal. Baena ranks fourth for chances created in La Liga this season, while also sitting joint-fourth for expected assists and joint-fifth for big chances created.
He has also contributed goals, registering five across 16 appearances in all competitions. His ability to deliver from set-pieces provides another dimension to his game.
Former Spain Under-21 coach Santi Denia, now in charge of the Czech Republic, has previously described Baena as a "complete player", reflecting the range of qualities he offers in the final third.
Arsenal's interest comes as they assess how best to strengthen their forward line. Arteta wants a player capable of carrying the ball forward quickly in transition while also possessing the technical quality to make an impact against teams defending in tight spaces.
Baena fits that profile, although any move would depend on Atletico's willingness to negotiate and Arsenal's ability to reach an agreement.
There could also be a wider transfer connection between the clubs. Atletico are monitoring Arsenal midfielder Martin Zubimendi, and the possibility of a swap involving Baena has not been ruled out.
Arsenal could potentially use interest in Zubimendi to help facilitate a deal, although there is no indication that negotiations over such an arrangement have taken place.
The Gunners are also aware that Bournemouth are reluctant to lose Kroupi midway through the season, meaning their search for an attacking addition could require flexibility.
Baena's combination of creativity, dribbling, set-piece delivery and goal threat makes him a credible alternative as Arsenal prepare for the January window. Whether Atletico would be willing to part with him remains to be seen, but he is firmly among the options being assessed by Arteta.