After joining his old club for preseason trials, Cazorla has done enough to land a deal.
The midfielder hasn't played competitive football for two years due to injury and surgery complications while with Arsenal.
Cazorla was released by the Gunners at the end of last season.
Villarreal announced on Monday that terms had been agreed with Cazorla over a contract for this season. The former Spain international's signing ceremony will be held on Thursday.