Gunners track Tiago
The highly-rated midfielder has attracted the interest of a host of top clubs across Europe with his performances for Benfica.
Italian quartet Milan, Internazionale, Juventus and Parma have all been tracking Tiago and are ready to make a move for him in the summer.
Arsenal could be in the market for a new midfielder with doubts still surrounding Patrick Vieira's future at Highbury, and Gunners boss Arsene Wenger will continue to monitor his progress.
Benfica are unlikely to be able to resist any major bid for Tiago, as the Portuguese giants still find themselves in serious financial bother.
Meanwhile, Tiago has been included in the Portugal squad for next week's friendly with Holland along with Newcastle's Hugo Viana.
Full squad:
Ricardo Pereira (Boavista), Quim Silva (Braga), Fernando Couto (Lazio), Fernando Meira (Stuttgart), Rui Jorge (Sporting), Beto Severo (Sporting), Rogerio Matias (Guimaraes) Rui Costa (Milan), Sergio Conceicao (Internazionale), Luis Figo (Real Madrid), Tiago Mendes (Benfica), Miguel Miranda (Benfica), Deco Souza (Porto), Maniche Ribeiro (Porto), Hugo Viana (Newcastle), Luis Loureiro (Gil Vicente) Simao Sabrosa (Benfica), Pauleta Resendes (Bordeaux), Nuno Gomes (Benfica)