The Belgium international joined Mikel Arteta’s side in a £27 million deal from Brighton in the January transfer window last year.
Since his move to the Gunners, the 29-year-old has scored 19 goals and registered 12 assists in 71 appearances.
The Premier League transfer window has now closed but Saudi clubs can still sign players until 10pm BST on Monday evening.
According to Fabrizio Romano, Al-Ittihad have made a last-ditch bid to sign Trossard as an offer worth €35m (£29.4m) has been sent to Arsenal.
The Gunners must now decide whether to sell Trossard in the knowledge that they would be unable to sign a replacement until January.
Trossard must also be willing to accept a move to Saudi Arabia less than two yearsafter joining Arsenal.
The Belgian has started just one of Arsenal’s three Premier League games this season – the 1-1 draw with Brighton on Saturday – and scored his side’s opener in the 2-0 win away to Aston Villa on August 24.
Speaking before Arsenal’s draw with Brighton, Arteta highlighted the impact Trossard has made since his arrival.
‘Huge, and not only when he starts from the bench, when he has started games, big games,’ Arteta said.
‘Last season you look especially at the last quarter of the season, the amount of runs of games he had was huge, and he has been really consistent with his threat on goal, with his capacity to create situations and especially big chances.
‘And then without the ball what he’s doing is great, I’m really pleased with it.’
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