The Sun says the Gunners are expected to embark on a major squad overhaul this summer after a miserable campaign which has seen them fall well short in the race for the Premier League title.
And the Bosnia & Herzegovina defender could well be the first of a clutch of players to sign on the dotted line.
Goal reports the player has undergone a medical and agreed personal terms with the Premier League club.
Kolasinac's contract with the German outfit expires on June 30, and it is expected he will join up immediately after.
It's suggested Kolasinac was “in London two weeks ago for a sponsorship event and underwent medical tests during his short stay in the capital".