Garcia was a top target to replace Aaron Ramsdale last summer, but the Gunners ran out of time to negotiate with the La Liga outfit.
Espanyol are prepared to discuss terms for an early transfer this summer and reports claim that Arsenal are favourites to land his services.
Arteta wants him as a strong competitor to David Raya. Raya has been exceptional in goal, but Garcia remains on the manager's radar.
The 23-year-old agreed personal terms with the London giants last summer and a transfer could be straightforward at the end of the campaign.
He has a release clause worth €25 million in his deal, but could be signed for around €20m when the transfer window reopens later this year.
The arrival of Garcia should coincide with the departure of Neto whose loan spell from Bournemouth expires at the end of the campaign.