The Mexican has enjoyed an impressive season with Bayer since moving from Manchester United in the summer, and the Gunners were reported as interested in him ahead of the January transfer window, per Tony Stenson in the Daily Star.
His 21 goals this term have reportedly also caught the eye of Ancelotti—who will succeed current boss Pep Guardiola in Munich in the summer—with the Italian having now instructed Bayern chiefs to prepare a move for Hernandez, per Spanish outlet Fichajes (via Goal).
The report indicates Hernandez could be open to working under Ancelotti having been given a chance by the Italian when he was on loan from United at Real Madrid in 2014-15.
He has also proved himself to be very effective in the Bundesliga and would be an excellent addition to the Bayern squad as a backup for Robert Lewandowski, per Bleacher Report UK:
For Arsenal, he could also be a vital addition, as manager Arsene Wenger currently has only one out-and-out striker in his ranks in Olivier Giroud.
As noted by Bleacher Report's Dean Jones, the Gunners really need another striker on their books to act as competition and cover for the Frenchman:
Chicharito is a proven goalscorer in the Premier League having netted consistently during his time at Old Trafford.
And the 27-year-old has looked even better in the Bundesliga as he has been given more starting opportunities than previously—his 13 league goals have come in 17 appearances, only two of which have been from the bench, per WhoScored.com.
However, Arsenal may have missed their chance to sign the Mexico international if Ancelotti has indeed made moves to bring him in when the summer rolls around.
Hernandez's prior relationship with Ancelotti could prove decisive in any move he makes, while he may wish to stay in the Bundesliga given how he has thrived there during the current campaign.
Equally, he may decide to stay put in Leverkusen given his prominent role in the side. He recently said that he was not happy playing the majority of his games as a substitute when at United, but any move to Arsenal or Bayern would likely see him return to the bench more regularly, per Rory Smith in the Times.
Elsewhere, goalkeeper Wojciech Szczesny will return to Arsenal in the summer, as Roma have decided against making his season-long loan deal permanent and have agreed the signing of Brazilian stopper Alisson, per John Cross in the Mirror.
The Pole's future is now increasingly uncertain as there is little chance of him reclaiming the No. 1 role at the Emirates given how good Petr Cech has been this season for the north London outfit.