Gunners chief scout Steve Rowley watched the 17-year-old during his Golden Ball-winning performance at the Under-17 World Cup, in which he led his country to the title earlier in November.
And Henry Galeano, who represents Iheanacho, has claimed that Arsenal have joined a list of other suitors vying for the highly rated youngster.
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"That said, the attention is well deserved. Iheanacho’s performance at the World Cup was indeed remarkable.
"Iheanacho has consistently shown good form and the statistics throughout his career as a youth player with Nigeria are quite impressive.
"Even during the World Cup qualifications in Morocco, Iheanacho was the second-highest goalscorer.
Galeano, though, said that whilst Arsenal's interest is flattering he will continue to consider all available options for his client.
He continued: "At present we are considering and evaluating all options. Our goal is to match Iheanacho with a club that fits his profile, and a club that can bring out the very best in him.
"If Arsenal are an option, we'll be glad to sit down and consider it. Iheanacho wouldn't be the first Nigerian to play for them. The thought of him following in the footsteps of the great [Nwankwo] Kanu definitely has a nice ring to it."