According to the Sunday People, Benitez is in negotiations with Gunners boss Arsene Wenger over the proposed transfer of the Dutch international, as he seeks to offload the 23-year-old.
Babel is already believed to have rejected moves to both Birmingham City and Sunderland but could be tempted by a transfer to Arsenal.
One potential stumbling block though could be the fee. The tabloid reports that while Benitez is believed to want £11 million for Babel, Wenger is unwilling to go that high.
Specualtion is mounting that to reduce the fee, Fran Merida could be involved as part of the deal.
Merida is out of contract in north London at the end of the season and has been linked with a move to La Liga and Atletico Madrid. He could now be used as part of the package to lure Babel to the Emirates.
The Sunday People claims the two managers have been in talks for days over the deal, with Benitez hopeful of raising enough funds to bring in his primary transfer target Kenwyne Jones from Sunderland.
Babel is already believed to have rejected moves to both Birmingham City and Sunderland but could be tempted by a transfer to Arsenal.
One potential stumbling block though could be the fee. The tabloid reports that while Benitez is believed to want £11 million for Babel, Wenger is unwilling to go that high.
Specualtion is mounting that to reduce the fee, Fran Merida could be involved as part of the deal.
Merida is out of contract in north London at the end of the season and has been linked with a move to La Liga and Atletico Madrid. He could now be used as part of the package to lure Babel to the Emirates.
The Sunday People claims the two managers have been in talks for days over the deal, with Benitez hopeful of raising enough funds to bring in his primary transfer target Kenwyne Jones from Sunderland.
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