Both Arsenal and United are looking to bolster their squads with a new attacking signing in the January transfer window.
And according to Sky Italia, Carrasco is considered as a potential option by both Premier League clubs.
The report also claims that AC Milan are interested in Carrasco, but the Belgium international is understood to favour a move to Arsenal.
Carrasco joined Dalian Yifang for £26.5 million last year and the Chinese club, who finished 11th in the table last season, will want to recoup that fee.
Carrasco made an immediate impact on the left side of Dalian Yifangs attack with seven goals and five assists in 25 appearances.
But the 25-year-old is also capable of playing in a more defensive role and has been used as a wing-back by Roberto Martinez for Belgiums national team.
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