AS says the defender is being eyed by Real Sociedad as confusion reigns over the state of his contract.
The 33-year-old's £65,000-a-week contract was reportedly ended as the Gunners continue to shave their wage bill.
It's suggested the full-back's six-year stint at the Emirates is now over.
Monreal's contract technically ran out on July 1 and the club have not announced that he has signed a new one.
But The Sun reports no "mutual termination" has been agreed.