The 27-year-old's representatives have already held talks with the Gunners and are believed to be happy with the proposed deal on offer at Emirates Stadium.
According to Sky Sports, Cazorla will now fly to England within the next 48 hours to conclude his move to the Premier League.
Cazorla, a regular in Spain's all-conquering international squad, helped Malaga into the top four in La Liga last season after a €19million move from Villarreal 12 months ago.
However, Malaga have huge unpaid debts of around €40million which need settling this week.
Talks with Albanian oil company Taci have broken down and, whilst there is Russian and Middle East interest, the deal to sell Cazorla looks like it is needed to help sort out their current mess.
The Nike Hypervenom is the latest cleat silo from Nike. It will change your game and is worn by the game's top players.
Germany is one of the top teams ever and they will play the US on Sunday.
The adidas Nitrocharge is the most talked about new cleat in years. It was released on May 15 and will take your pitch by storm.
Barcelona will wear this new home soccer jersey next season. They also have a new away jersey. Get them both.
Manchester City will try and win back the Premier League title with this new soccer jersey from Nike!
The USA will wear their blue away jersey against Jamaica in their World Cup qualifier on Friday night.
Support the USA national team with an official 2013 Centennial soccer jersey from Nike. Its Official.
England will debut their new away jersey against Brazil at the Maracana Stadium on Sunday. Get in the Gear
The hoop soccer jersey is classic and cool. The USA hooped jersey is perfect for every fan. Get in the Gear.
Neymar's move from Santos to Barcelona is no doubt the biggest summer transfer.