Mikel Arteta is said to have been particularly impressed by the 26-year-old's displays across both legs. In the first leg in Lisbon, Araújo committed seven fouls without receiving a booking while nullifying Noni Madueke, also striking the woodwork with a rasping effort.
He repeated the performance in the second leg at the Emirates, again dealing with Madueke while contributing offensively.
Record reported on Saturday morning that Arsenal have "moved from words to action" and that conversations with Araújo's camp are at an "exploratory" stage. Sporting are aware of the growing interest and are in a strong negotiating position — Araújo is contracted until 2029 with an €80 million release clause.
The Portuguese club are not expected to accept offers below €60 million, a figure that makes this a significant investment for Arsenal.
Chelsea, Tottenham Hotspur and Atlético Madrid are also monitoring the player, meaning Arsenal face competition on multiple fronts if they decide to escalate their interest into a formal bid.
Araújo joined Sporting from Toluca in August 2024 and has contributed six goals and four assists across 41 appearances this season. He has 28 international caps for Uruguay and is expected to feature at the World Cup this summer.
Arsènal's interest in Araújo mirrors the move for Viktor Gyökeres, who was signed from Sporting last summer. The club's relationship with the Lisbon club may prove an advantage in any negotiations.