The 26-year-old is said to have reached an accord with the Gunners about a summer move that would see him join fellow Germany international Per Mertesacker at the Emirates
The Germany international's contract with the Billy Goats expires in 2013, and has repeatedly expressed his love for his hometown club. However, he has admitted frustration with the team's lack of progress in recent years, and earlier this year turned down the prospect of negotiations for a contract extension.
Amid reports that Koln are willing to offer to double his wages to €5 million per year, the player has stood with his previous pledge to wait until after Euro 2012 - and the opening of the transfer window - to decide on his future.
Arsene Wenger is a long-term admirer of the German international and the Gunners reportedly had two bids for the 26-year-old rejected last summer. But with his contract set to expire in just over a year, Koln will have little choice other than to sell their prized asset should he decline a contract extension.
However, German publication Express claim that Podolski has yet to put pen to paper, but that an agreement is only a matter of time and that the Gunners are aiming to tie up the deal as quickly as possible in order to avoid competition for his signature.
Podolski is believed to be on the wishlist of Schalke, who are said to be willing to offer him €6m per year, but now it seems that the Arsenal are leading the chase for the former Bayern Munich man.
The 26-year-old Germany international has been in blistering form for Koln in the Bundesliga this season, scoring 15 goals and giving four assists in 19 appearances.