Premier League outfit Tottenham Hotspur were believed to be leading the chase for the Croatia international, but he now looks poised to move to the Bundesliga side
The Croatia international has previously been linked with a move to England, with Tottenham Hotspur said to have been keeping tabs on the 23-year-old, but is now poised to seal a switch to the Imtech Arena.
However, Arnesen has admitted that he is unsure exactly when the proposed transfer will go through.
"We have essentially agreed with Dinamo Zagreb that the change must go through no later than August 30," he explained to Bild. "We are also basically in agreement with the player [over personal terms]."
Hamburg boss Thorsten Fink has no problem with waiting to complete the transfer for Badelj, believing that there is never any point in rushing a deal.
"If one or the other players arrive a little later, then so be it," he mused. "It is important that we are all convinced by the player."
Badelj, who has been capped four times by his country, came through the youth ranks at Dinamo after being signed from NK Zagreb as a 17-year-old.