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But the former Southampton man’s weekly wage of around £75,000 is proving a stumbling block.
Silva is keen to add to his squad next month following a strong start to the season which left the promoted side ninth ahead of the restart on Boxing Day.
No official approach has been made to the Gunners so far, with Mikel Arteta also yet to decide whether he would sanction Cedric’s departure.
The Arsenal boss has already described his squad as “short” this season.
Ben White has often played at right-back with Japan international Takehiro Tomiyasu struggling with a number of niggling injuries this season.
Arsenal are thought to want an obligation to buy included in any loan deal for the 31-year-old should it go ahead.
Should Fulham decide against a move, Spanish side Villarreal and German club Bayer Leverkusen are also keeping a keen eye on the Portugal international.
Cedric first joined the Gunners on loan from Southampton in 2020 before making the switch permanent on a free transfer following the end of his contract on the South Coast.
Cedric can also be deployed at left-back, meaning Arteta may want to keep him around as cover.
Oleksandr Zinchenko has struggled with calf injuries during his first season at the club and the Arsenal boss does not want to be caught short as he pushes for the title.