The Daily Mail says Arshavin is close to sealing a January move to relegation-threatened Reading.
The Gunners signed him for £15million in 2009 but he has held talks over a switch to the Madejski Stadium, where billionaire Russian owner Anton Zingarevich wants the 31-year-old - a superstar in their homeland - to bolster his struggling squad.
Sources close to Arshavin insist he is taking the offer seriously, given his frustration at Arsenal and the chance to link up with compatriot Zingarevich.
Reading have made an informal offer for Arshavin, who has been told he can leave if he can find the right deal for him and Arsenal straight away. His old club Zenit St Petersburg are keen, as are Fulham.