Goal previously reported that Torreira would make the £26 million (€29m/$34m) move after his country's World Cup campaign and with Uruguay falling to France in the quarter-finals on Friday, the path is now clear for the 22-year-old to join the Gunners.
"I was very happy to leave for Uruguay with my team-mates," Torreira told Telenoche , "but this is a good opportunity and I don't want to waste it."
Meanwhile, 19-year-old Guendouzi is expected to put pen to paper after Gunners head coach Unai Emery persuaded him to join.
Emery had previously attempted to sign PSG starlet Yacine Adli on a free transfer but the French youngster made a u-turn after initially being set on a move to north London.
Guendouzi is able to play in defensive midfield and made 18 appearances in Ligue 2 last season, while the fee is likely to surpass €8m (£7m/$9.4m) plus bonuses.
Nacho Monreal is the subject of interest from Spanish side Real Sociedad while David Ospina is closing in on a move to Boca Junios after four years with Arsenal.
Emery is unlikely to add any more first team players to his squad unless other players leave, with Sokratis Papastathopoulos, Berndt Leno and Stephan Lichtsteiner all arriving in the past few weeks.
Meanwhile, Aaron Ramsey has yet to sign a contract extension although the club remain confident that he will commit.