According to Sky Deutschland, Arsenal scouts have already watched Banks in person, with the Premier League club viewing him as one of the more promising young centre-backs emerging in Germany.
Banks remains under contract with Augsburg until 2029 and does not have a release clause, leaving the Bundesliga club in a strong negotiating position.
Augsburg sporting director Benjamin Weber has previously insisted the club hold full control over the player’s future and suggested a major move is likely at some point.
“We have the control, there is no danger,” Weber said earlier this year. “He will probably one day play for a very big club.”
Banks, a physically strong right-footed defender, has made a strong impression with his athletic profile and defensive presence, even if his minutes have reduced recently.
Arsenal’s interest fits a wider recruitment strategy focused on emerging defensive talent as they continue to plan for long-term squad evolution under Mikel Arteta.
The Gunners have increasingly targeted young Bundesliga defenders in recent windows, with internal scouting networks expanding across Germany.
While no formal bid has been made, early scouting suggests Banks is firmly on Arsenal’s radar ahead of future transfer planning.