The Dutchman has turned down a move to German side Stuttgart and is keen on a move to the Premier League, according to The Sun.
The Gunners believe they can win the race against Tottenham with an £16.5million bid for the Dutchman.
Huntelaar joined Real in January in a £20million deal from Ajax.
Huntelaar’s agent Arnold Oosterveer said: “We want the best option for the kid without taking too much time over it. Now the decision rests with Real.”
