Henderson's future at Anfield has been plunged into doubt amid talks over a contract extension failing to progress.
The 31-year-old Liverpool captain's current deal expires in 2023, but Reds owners Fenway Sports Group reportedly have 'bigger priorities' to address over a new contract for Henderson.
Atletico Madrid and Paris Saint-Germain have both been keeping tabs on Henderson's situation at Liverpool ahead of a potential move for him.
However, Coral now has Mikel Arteta's Gunners as the favourites to land Henderson on 4/1 odds.
The UK bookie has Atletico at 5/1 and Leicester City at 6/1, while PSG and Manchester City are 7/1 and 8/1 respectively.
Coral spokesman Harry Aitkenhead said: "Jordan Henderson is now into the last two years of his current contract at Liverpool.
"And if and when he does move on, Arsenal are our favourites to sign the midfielder."
Arsenal boss Arteta is keen to reinforce his squad options in the summer and the Gunners have been heavily linked with Italy midfielder Manuel Locatelli.
The Gunners could also make a move for Henderson should he become available this summer, with Arteta's men hoping to challenge for a top-four spot next season.
Former Liverpool player Stan Collymore has called Henderson an "absolute legend at the club" and believes the Reds should offer him a new deal, which includes a coaching role.
The 50-year-old told The Daily Mirror: "Jordan Henderson must be given a new deal at Liverpool and it should include a coaching role so he can transition into management.
"He's an absolute legend at the club, great with all who deal with him and a genuine positive influence.
"Nothing is guaranteed when players try to transition into coaching. But Henderson with his intelligence and leadership qualities is worth the investment."
Featured Image Credit: PA
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