The Frenchman has been out of work since the end of last season when he quit the Gunners following a record 22 years.
Asked if he is going to retire, Petit told The Sun: “No. He is going to manage soon. Yes, soon.
“I had a conversation three weeks ago when I was in Dubai. He was with a friend of mine.
“There are big rumours in France about him taking over as Bayern Munich manager.
“Some of them said he is going to go to Madrid, I don't believe in it. Some of them said there is big things at Paris Saint-Germain as a sporting director.
“You've got big names there. Can you imagine if you put Arsene Wenger there? I don't believe in it.
“I still believe Arsene is passionate about the field, working with the players. This is something really important for him.
“It's vital, so I don't see him working in the offices. He could, he has the knowledge and the intelligence to do that. He still has experience to give on the pitch."