The midfield ace will not sign a new deal after turning down the Ligue 1 champions' final attempts to keep him at the Parc des Princes.
The Gunners are favourites to land the 23-year-old at 10/1.
Meanwhile Spurs trail their North London rivals and are 16/1 in the market.
Rabiot's contract expires next summer, meaning he can agree to sign for foreign clubs in the January market.
Arsenal could inflict more misery on Spurs by beating them to Rabiot's signature, after thrashing them 4-2 in the North London derby at the Emirates.
Betfair's Katie Baylis said: "With new contract talks reportedly stalled between Rabiot and PSG rumours are that he could be headed to England.
"Arsenal and Spurs are being talked about as potential suitors and we make the Gunners the favourites at this stage.”
Arsenal boss Unai Emery worked with Rabiot during his time as PSG boss, meaning the pair could reunite at the Emirates.
Source: Read Full Article