Nottingham Forest winger Oliver Burke, 19, is also attracting interest from Bayern Munich.
Lucas Perez has scored 19 goals for Deportivo last season.
Lucas and Mustafi are expected to have arrived in London for their medical with Arsenal.
German international centre-back is poised to complete his £35m move from Valencia shortly.
Former Everton centre-back is reportedly set to sign a five-year contract for a fee in excess of £35m.
Lucas Perez scored 17 goals in 36 La Liga appearances last season.
Joel Campbell has made only 11 starts in the league last season for Arsenal
Omer Toprak is open to the idea of leaving Bayer Leverkusen this summer.
Merson bemoans Arsene Wenger's failure to sign a quality defender during 20 years at the club.
Mustafi was part of Valencia's squad for their opening game of the 2016/17 La Liga season.
French striker has scored five goals in the opening two weeks of the 2016-17 Ligue 1 season.
Jonny Evans joined West Brom from Manchester United for £6m in 2015.
The Gunners are "working hard" on new additions, the French coach maintains.
Riyad Mahrez has been on Arsene Wenger's radar this summer.
Mustafi has reportedly already agreed personal terms with Arsenal.
Former Gunners striker wants a marquee addition to lift the gloom over the north Londoners.
Gabriel Barbosa has also attracted interest from Juventus and Atletico Madrid.
The French striker has been linked with a big money switch to the Gunners.
French striker has been linked with a host of clubs across Europe this summer.
Paul Pogba's move to Manchester United for £89m will hurt Gunners fans according to former striker.
Arsenal have conceded four goals in a game at home for the first time since moving to the Emirates.
Arsenal started with Calum Chambers and Rob Holding in defence.