The 24-year-old was out of contract in the summer and turned down the offer of a new deal, understood to be worth £55,000-a-week, to instead join AC Milan - although as yet there has not been official confirmation of the move by the English club.
A statement from the club read: "Arsenal can confirm that Mathieu Flamini will join Italian Serie A side AC Milan on July 1, 2008 on a free transfer.
"Everyone at Arsenal Football Club wishes Mathieu the best of luck for the future."