The Gunners have reportedly struck a deal for the highly rated striker who is looking for a new challenge in his career after becoming unhappy in Cologne.
The German publication claims that the two clubs have concurred on deal worth 13 million euros for the striker, whose Koln contract expires in the summer of 2013.
Podolski has been linked with a new challenge in the summer in recent weeks after admitting he had become disillusioned with life in Cologne following the club's lack of progress in recent years.
Last week, it was suggested that the 26-year-old had agreed personal terms with Arsenal, and now everything seems to be ready for the player to move to London.
The Germany international, who will reportedly sign a four-year contract with the Gunners, was also linked with Schalke and Serie A duo Inter and AC Milan.
At Arsenal he will be playing alongside compatriot Per Mertesacker, who has opened the club's doors to the striker.