The Gunners board will be prepared to fund a £30million fee for Lyon's Benzema, 21, if Arsene Wenger opts to cash in on Emmanuel Adebayor.
AC Milan have been considering making a new move for Adebayor this week. Togo ace Adebayor, 25, has also been linked with a move to Inter Milan and even Chelsea.
United are in pole position to lure Benzema - but he is also on Real Madrid's radar. The player says he would prefer another season at Lyon to make sure he cements a place in the France side for the World Cup. But the club's owners have hinted that a bid of more than £30m would turn their heads.
Gunners chief Wenger has been a long-term fan of Benzema. There were suggestions last summer he had a verbal deal with Lyon offering him first refusal.
On the face of it, £30m would seem out of Arsenal's range. But the Arsenal board have approved up to £40m on new signings this summer and the sale of Adebayor would boost the transfer pot.
Wenger hopes to sign Brazil midfield ace Felipe Melo, 26, from Fiorentina. But the Serie A club may want £25m with Arsenal valuing him at £15m.
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