The 25-year-old only joined the Gunners last year from Valencia for a fee reported to be in the region of £35m.
Injury disrupted Mustafi’s 2016-17 campaign as he made 26 Premier League appearances in total, and returned to the fold for Saturday’s 1-0 defeat to Stoke City.
According to The Mirror, Inter feel encouraged that they can get a deal done before the deadline, and have approached Arsenal with a loan proposal, which would end in a permanent deal worth more than £20m.
The report claims that Juventus are also keeping tabs on the defender, who previously played in Italy for Sampdoria between 2012 and 2014.
Arsenal have made two signings so far this summer; Sead Kolasinac and Alexandre Lacazette.