Arsenal have made contact with Neto's agent, Jorge Mendes, over a potential deal.
Wolves are ready to sell Neto, but the Wanderers want as much as £60 million in transfer fees for the Portugal international winger.
Arsenal are third in the Premier League table at the moment with 27 points from 12 matches, level on points with third-placed Arsenal and a point behind leaders and defending champions Manchester City. Meanwhile, Wolves currently find themselves 12th in the league table with 15 points from 12 matches.
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