Goal claims Nelson will complete the season-long loan move after he has signed a new contract with the Gunners. His current deal expires at the end of the season.
A move to the Bundesliga has worked well for young English talent in recent times.
Ademola Lookman was a consistent performer for RB Leipzig after joining from Everton on loan. Former Manchester City whizkid Jadon Sancho was also given an opportunity in the first-team at Borussia Dortmund.