Cole will become a free agent on July 1 when his Chelsea contract expires, with Spurs supremo Harry Redknapp making no secret of his desire to sign the former West Ham starlet, while Gunners' boss Arsene Wenger has also admitted his admiration for the playmaker.
GEAR:Get a Joe Cole England shirt
Both Cole and his agent have insisted that no announcement regarding his future will be made until the midfielder returns from holiday following England's failed bid to lift the World Cup in South Africa.
And, according to reports, the Rossoneri have joined the race for his signature, and will offer the player £60,000-per-week, a 25 percent pay-cut from his wages with the Stamford Bridge side.
Cole has won 56 England caps and scored 10 goals, but made just two substitute appearances during the Three Lions’ disappointing performance in South Africa - bowing out to Germany in embarrassing style in the second round.
Inter Milan, Lazio and Juventus are also thought to be interested in signing Cole, but they could all be left frustrated with the midfielder believed to be keen to remain in London, making Arsenal and Spurs the favourites.
Should he opt to move to either Emirates Stadium or White Hart Lane, Cole is expected to be handed a three-year contract worth £80,000-per-week.
Cole's former Chelsea captain John Terry has expressed his disappointment that the Blues opted to allow Cole to leave the club.
"It still amazes me how the club have come to the conclusion of letting Joe go, we are disappointed with him going.
"He was a great boost for us, coming back from his injury, and it was right for Chelsea for him to come back into the side. He got a great goal away from home at Manchester United, which proved to be vital [in winning the title].
"Joe is one of the best players in our country. He has come back from an injury and showed great form for Chelsea."
By Tom Parsons and Nick Poyser
