The 25-year-old Brazilian international has made 29 league appearances for la Viola since arriving from Spanish side Almeria a year ago.
And he is set to face South Africa in the Confederations Cup semi-finals on Thursday night, having already netted for the Samba Boys against the United States earlier in the competition.
Gunners boss Arsene Wenger is believed to be a keen admirer of the middle-man, who has been capped eight times by his country, with the Frenchman eager to add some steel to his midfield ahead of the new Premier League campaign.
But despite reports quoting Melo's Fiorentina team-mate Alberto Gilardino as saying he expects the Brazilian to be sold this summer, a spokesman for the midfielder has insisted the former Flamengo man is happy in Italy.
"Felipe is playing very well in the Confederations Cup and he had a tremendous season with Fiorentina," Emiliano Froldi told skysports.com.
"It's normal that there are rumours about him because of his great performances but the player and his family are very happy in Florence.
"He loves the city and he has a very good relationship with his team-mates, the fans and the club."
NEWS: Gilardino denies Melo exit talk
NEWS: Gilardino: Melo may be sold
NEWS: Flattered Melo may yet join Arsenal
