Mkhitaryan could seal a move to the Emirates before the January window closes and could be used as a makeweight for Alexis Sanchez to head the other way.
Arsenal are also looking at a tying up a deal for Pierre-Emerick Aubameyang, who has become increasingly frustrated at Borussia Dortmund.
Mkhitaryan’s wage demands are supposedly slowing down a switch to north London, as his agent Mino Raiola deals with the negotiations.
But former United defender turned pundit Neville thinks Mkhitaryan’s prospective move could benefit him and the Red Devils.
“I can see Henrikh [Mkhitaryan] going to Arsenal and being a fantastic signing for them,” Neville told BBC Radio 5 live.
“If Arsenal sign Mkhitaryan and Aubameyang, Arsenal may become a better team, because they will have two really good players.
“We didn’t see the best of Mkhitaryan at United. I’m a massive fan of him.
“We saw glimpses this season, but I didn’t think he would be in Jose’s starting XI.
“He needs to go to a club where he will be allowed to flourish and maybe Arsenal is that club.
“I think it is a sensational deal for United.”
