The Gunners tried and failed to recruit the 23-year-old last summer, and intend to return for him later this year when the transfer window reopens at the end of the season.
Arsenal wanted Garcia last year but were unable to agree terms with Espanyol and will look to return with an improved bid in the next summer transfer window.
The North London club ended up signing Neto on loan from Bournemouth as a cover for David Raya, but the Brazilian is expected to leave once the temporary deal expires at the end of the season.
Arsenal have 18-year-old Tommy Setford and 16-year-old Jack Porter as their first-team options, but they could do with a more experienced option capable of giving Raya a run for his money, and Garcia fits the bill.
Espanyol wanted his £25 million buyout clause activated last summer before agreeing to do business, and the Gunners must be willing to meet it to have a chance of getting their man.
They had a verbal agreement in place over personal terms with Garcia last time out and while it is unknown whether that still stands, reaching a fresh agreement would not be an issue as the goalie is keen on playing for Arsenal.
The North Londoners are already preparing for the summer transfer window after failing to make any recruitment in January, and while a new striker is top of their plans, they also want another keeper.
They also hope to secure the signing of £50m midfielder Zubimendi, but their interest in Garcia is ongoing and could be wrapped up very early in the summer window once an agreement can be found with Espanyol.
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