The Portuguese newspaper report that the Gunners had a representative present on Friday night to watch the 20 year old when Benfica beat Arouca 3-0 in a league match.
The Serbian signed from Partizan Belgrade for approximately £5.5million in the summer but initially struggled to establish himself in Rui Vitoria’s side, after only making one brief substitute appearance in the first 15 league matches of the season.
His performances in cup competitions have however seen a swift change in fortunes for the player. After starting and providing an assist in the Portuguese Cup Fifth Round match against Real Massama before Christmas, he continued his good form after the winter break with another three assists in the Portuguese League Cup tie against Vizela.
Zivkovic has featured in every league game since then, and so far this season he has made 13 appearances, providing an impressive eight assists in all competitions.