The Gunners have been heavily linked with the Crystal Palace winger, who is reportedly keen to move to the Emirates Stadium.
Palace want to keep hold of their star man but could be persuaded to change their stance if the price is right.
However, acquiring Zaha may force Iwobi out of north London ahead of next season.
“I am not one to chicken out,” The Nigeria international said. “I have had it all over the years, being told I’m not good enough.
“So whenever the chance comes I always try and prove I should be starting. But it’s going to be difficult if Zaha comes. He will add more stress.
“I am up for the fight but the only time I would consider leaving is if I am not playing as much as I would like to.
“Obviously, my joy is to play football and not just sit out. If it comes to that I would have no choice but to leave. But I would always put up a fight to play — that is what I have done all my life.
“We have big stars already, so by adding another one I’ll just have to prove I can do better than them.”