Apart from Villa, Premier League rivals Brentford and Leeds United are also said to be interested in acquiring the striker, with Leeds also being the club he spent five months with on loan in the 2019/20 season in the Championship.
Nketiah has just featured in 82 minutes of football for Arsenal this season after sustaining an ankle injury against Chelsea during pre-season that kept him out of action for several weeks.
While Nketiah scored in the Carabao Cup third-round tie against AFC Wimbledon last month, he did not feature in Arsenal's squad for the North London Derby, and has largely struggled to break into the starting lineup during his time at the club.
According to top football journalist Ekrem Konur, Villa, along with Brentford and Leeds are showing an interest in the player who is out of contract at the end of the season, with him also wanting to leave Arsenal in January.
While Villa have plenty of attacking options, with the likes of Danny Ings, Ollie Watkins and Keinan Davis all capable of playing up front, but they are still monitoring the situation of a player like Nketiah, who could be a cheap option to strengthen their side even more.
Brentford will be looking to add more Premier League quality to their squad, as they look to cement their place in the league for another season and continue their impressive performances, while Leeds will be intrigued by the possibility of having someone as backup to Patrick Bamford, especially someone that has already spent some time at the club.
Speaking on Nketiah after the Wimbledon game, Arsenal manager Mikel Arteta said "I think Eddie gives us a lesson every single day of how a professional should live in this job".
"There has been a lot of speculation around him, a lot of debate, and he puts his head down, he trains harder than anyone else, he looks after himself, and he supports every teammate under any circumstances."
He added: "I'm so happy for him. It's not a coincidence that he's able to perform at that level and, physically, how he manages the game because he trains like the best every day, so I am delighted for him."
There have been reports linking him with a new contract at Arsenal, but if he wants regular playing time, he might have to get a move away from the Emirates Stadium for good.