Frequency Modulation with arduino

Jiggy-Ninja:
4) Are you intending to transmit an analog or digital signal?

A DDS chip like AD9850 that stowite suggested is not going to be useful for frequency modulation, only for frequency shift keying (or phase shift keying) of a binary digital signal. It will be pretty useless for analog modulation or demodulation. Modulation needs to be done with a voltage-controlled oscillator (VCO) and demodulation with a phase locked loop (PLL). PLLs have a VCO built into them, so you can more than likely use the same kind of chip on both the transmitter and receiver.

I found this article the other day ( All Digital FM modulation w/ Arduino & AD9850 – Zissis SV1RME Projects ) describing frequency modulation of a carrier with audio using an AD9850.

Until the OP comes back with the requested details then I can't say whether or not an AD9850 might help him.