This is according to Goal, who claim the Gunners are closing in on the defender.
The 23-year-old is out of the contract in the summer, meaning he will be available on a free transfer.
Arsenal are confident of signing Sead Kolasinac this summer
Chelsea were linked with a move for the Bosnia international back in January.
But it now appears Arsenal are leading the race for the defender.
Arsenal will likely be in the market for a new left-back this summer with the futures of both Nacho Monreal and Kieran Gibbs in doubt.
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Alexandre Lacazette (Lyon)
Gibbs has struggled for game time this year and the England international is out of contract in less than 18 months, while Monreal has struggled for form this term.
Kolasinac has established himself as Schalke's first choice left-back since joining the club in 2011.
The Bosnian has made 31 appearances in all competitions for the Bundesliga side this season, scoring three goals.
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