With the emergence of England international Kieran Gibbs, the left-back appears set for a move to the Portuguese champions in a reported £3.2million deal.
Traore's agent Richard des Voeux told the A Bola newspaper: "A number of European clubs were interested in Armand, but the Benfica option is more important in many aspects.
"The interest is real and we are at a sensitive stage (of negotiations). Armand is aware of contacts between Benfica and Arsenal.
"Benfica are a wonderful club that would interest any player. Obviously, Armand is very interested and excited about the possibility of coming to play at Benfica. Nothing is finalised, but things can be decided very soon."