The schoolboy made a cameo appearance for Celtic's Under-20s in September.
Majority shareholder Dermot Desmond delighted with interest in best players.
Gunners have sent scouts to watch Dembele after the 20-year-old's recent impressive performances.
Dembele scored twice in the 3-3 Champions League draw with Manchester City.
Prior to Celtic clash, Guardiola's Manchester City won 10 games in all competitions.
Former Liverpool boss is also looking forward to a reunion with Raheem Sterling on Wednesday night.
Danny Murphy says Mourinho was disappointed to be overlooked for Rafael Benitez.
Alcantara left Barcelona due to lack of playing time at Camp Nou.
Balotelli made 16 Premier League appearances for Liverpool scoring just one goal.
Benteke, 25, joined the Eagles on a club record £27m deal earlier this month.
Andre Wisdom has not made an appearance for Liverpool since 2013.
The Manchester United midfielder is not a target for the Scottish Premiership champions.
The 35-year-old has signed a one-year contract at Celtic Park to reunite with Brendan Rodgers.
Red Devils boss Jose Mourinho reportedly eyeing the 26-year-old after his impressive performances at Euro 2016.
Joe Allen was one of the star players for Wales in the Euro 2016.
Assistants Zeljko Buvac and Peter Krawietz also sign new deals with Merseyside club.
The World Cup winner expresses interest but new Celtic manager laughs off links.
The French youngster has moved to Celtic Park on a four-year deal from Fulham.
Gary Neville has had one stint as a manager at Valencia that ended with him being sacked.
IBTimes UK looks at the possible candidates for the Three Lions after their shock exit.
Swansea and Celtic are both reportedly interested in signing the 26-year-old this summer.
The 26-year-old midfielder has played for various clubs since making his professional debut with Reading.