Kayode broke into Fiorentinas first team this season and has already made six appearances, providing an assist in the recent 3-0 win over Cagliari.
According to Football Italia, representatives from Arsenal and Italy coach Luciano Spalletti were in the stands in Fiorentinas recent game keeping a close eye on the talented 19-year-old.
A product of Juventus youth system, Kayode spent seven years attached to the club before joining Serie D side Gozzano, initially on a two-year loan before making a permanent move in 2020.
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After a year with Gozzano, he headed to Fiorentinas Primavera squad, where he spent two seasons.
Kayode shot into the limelight this summer when he scored the decisive goal in Italys 1-0 win over Portugal in the U-19 European Championship final in July.
In September, he was on the bench for the Italy U-21 side, showing his quick rise at national level.
He made his debut in Fiorentinas 4-1 win over Genoa at the start of this season and was briefly benched by new signing Dodo before the Brazilian suffered a knee injury, affording him more space in Vincenzo Italianos squad.
Earning just 30,000 net per season, he is contracted to Fiorentina until June 2025, which could be extended by another year.
Also, the club is keen to tie him down to a new deal, however, with a pay raise reflective of his potential.
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