The defender had previously attracted interest from West Brom but Tony Pulis' side pulled out of the running last week.
Arsene Wenger is willing to let the left-back leave this summer after the arrival of Sead Kolasinac pushed him further down the pecking order at the Emirates.
Gibbs was left out of Arsenal's pre-season tour squad and has also not featured at all in the Emirates Cup, suggesting that he does not feature at all inWenger's plans for the upcoming season.
However, 'Sky Sports' reports that the player would need to agree to a pay cut in order to push through a move elsewhere this summer.
It is believed that West Brom, Watford and Newcastle have all baulked at the star's salary, though Marco Silva's side are hoping to come to some sort of an agreement with Arsenal that will see the 'Gunners' pay a portion of the player's wages for the remainder of his contract.
The 27-year-old has just 12 months left on said contract and after making just eight Premier League starts next season, is starting to consider that his future may lie elsewhere.