The 23-year-old also contributed four goals and three assists for Sassuolo last season and helped the club to an eighth-placed finish in Serie A.
When asked about any interest in the midfielder, Sassuolo CEO Carnevali told Sky Sport Italia: "There are other teams interested in Manuel, Arsenal is one of them and perhaps they are the one that is further ahead because they have made us an important proposal.
"Indeed, up to now it is the only company that has submitted a concrete offer."
Carnevali also confirmed that Arsenal will face competition from Juventus for Locatelli's signature but added talks with the player have not taken place.
"Juventus are the only Italian club we talked to about Locatelli," Carnevali added. "They have interest, we spoke to Juve's director Federico Cherubini last week but we have not yet discussed the financial details.
"We have a good relationship with Juve so we will talk it over soon. We are trying to leave the player [Locatelli] calm, so I haven't spoken to him or his agents yet.
"We can think about Locatelli's future but above all we care about his present and that means Italy doing well at the Euros."