It is believed that Wenger is keen on signing the defender since his days at Fulham and likes him because of his ability to also play as a right-back if necessary as well.
David Moyes is ready to shake up his side during the upcoming transfer window which could result in the departure of several names with Smalling included which is why Arsenal believe they are firm contenders to sign the 24 year-old.
Smalling has two years remaining on his contract and the Gunners think that a 13 million pound bid would be enough to tempt the Red Devils into a sale as they would make profit on the 11 million pounds they paid in 2011.
The 10 time England international has made 22 appearances for the Manchester United team in the Premier League this season.