Premiership keeper merry-go-round awaits first move
Schwarzer is expected to complete a switch across London to The Emirates following the end of Australia's World Cup adventure.
The former Middlesbrough custodian will cost the Gunners around £3.5million, according to the News of the World, and the Cottagers will put that fee towards a deal for England stopper Green.
New Hammers boss Avram Grant is open to the idea of selling Green, as he is believed to be keen on a swoop for Stoke keeper Begovic.
Grant knows Begovic from his Portsmouth days and the player is only second choice with the Potters.