The Poland international’s future remains the subject of intense debate despite CEO Hans-Joachim Watzke having insisted Lewandowski will play for Dortmund next season.
BVB have ruled out selling their star striker to rivals Bayern Munich although the player remains keen on a move to the European champions.
Meanwhile, Goal understands Manchester City could move for Lewandowski if they fail to capture their primary target Edinson Cavani.
Premier League rivals Manchester United have also been linked with the Pole but Podolski feels Lewandowski would be a huge success with the Gunners.
"He scored 24 times last season,” he told Polish newspaper Polska The Times. “He can make it anywhere and he would fit perfectly at Arsenal.
"At the end he has to decide, not the media or manager."
Lewandowski scored an impressive 24 goals in just 31 Bundesliga appearances last season for Dortmund and 36 goals in all competitions for Jurgen Klopp's men.
Goal also understands Arsenal are closing in on a deal for Real Madrid striker Gonazalo Higuain after the Argentine striker agreed personal terms with the Gunners.