Germany international Mesut Ozil joined Real Madrid from Werder Bremen in 2010 and has represented the nine-time European champions in 155 games. (Getty Images)
The German international has also agreed personal terms with the North London club but is yet to have a medical – which will take place in Germany as he is on international duty – before the deal can be formally completed.
It is understood that Arsenal opened talks on Friday and are willing to meet Ozil’s £180,000-a-week wage demands and make him their club’s record-signing.
The Gunners are also in talks to sign Chelsea striker Demba Ba, 28, on loan and close to agreeing a season-long loan deal for Palermo goalkeeper Emiliano Viviano, 27.
Manager Arsene Wenger has made only two signings – young striker Yaya Sanogo, 20, and returning midfielder Mathieu Flamini, 29 – both on a free. The Frenchman is also interested in signing Ozil’s club teammate Angel di Maria, 25.
Real Madrid signed Ozil from German club Werder Bremen in 2010 in a £12.4m deal. The 24-year-old was left on the bench for Real’s 3-1 win over Athletic Bilbao on Sunday.