According to 'Sky Sports', Inter have had a loan move for Mustafi rejected by the Gunners, but the Italian side are likely to return with an offer for a permanent deal.
The 25-year-old only moved to the Emirates last summer and is very much in Arsene Wenger's first team plans for the new Premier League campaign.
If the North London side were to let the German international leave, Inter would have to equal the £35m paid to bring Mustafi to Arsenal from Valencia.
The defender was a key figure in Arsenal's back line in the 2016/17 season, making 26 appearances and scoring twice.
Mustafi is unlikely to start against Stoke on Saturday as he is still regaining full fitness, but could be in contention to face Liverpool on August 27.