The Frenchman has found first-team opportunities limited at the Emirates and with rumours of potential midfield signings, has chosen to spend the next season in the Bundesliga
The 22-year-old proved himself to be a versatile member of Arsene Wenger's squad after breaking into the first-team in August 2011, playing at both right and left-back as well as his preferred position of central-midfield.
However, after the arrivals of Mikel Arteta and Santi Cazorla, as well as the return to fitness of Jack Wilshere, Coquelin struggled to make an impression last season, though he did manage 22 appearances in all competitions.
Ahead of the new season and with rumours continuing to surface on potential midfield moves for the likes of Marouane Fellaini and Lars Bender, the France under-21 international has elected to spend the next campaign in Germany with SC Freiburg, who will also compete in Europe via the Europa League.
The move represents another step in what could prove to be a hugely significant summer of transfer business for both Arsenal and Arsene Wenger.
Another young Frenchman, Yaya Sanogo completed his move to London on July 1 while Real Madrid striker Gonzalo Higuain is said to be close to sealing his club record-breaking transfer to the Gunners.