Italian journalist Emanuele Giulianelli reported on Friday that the versatile defender is set to undergo a medical at the north London club on Monday ahead of a proposed move to The Emirates.
Arsenal manager Arsene Wenger is currently short on defensive options following injuries to his captain Per Mertesacker and Brazilian centre-half Gabriel Paulista.
The Gunners boss was forced to field inexperienced duo Calum Chambers and Rob Holding for the visit of Liverpool last weekend as Jurgen Klopp’s side were 4-3 winners in north London.
Sky Sports’s La Liga expert Balague offered Arsenal supporters hope in Wenger’s pursuit of Mustafi as the Spanish journalist confirmed that Valencia need to sell the defender to ease their financial woes.
“Valencia as a club need to sell. The Valencia coaching staff want to keep Mustafi,” Balague told Sky Sports News.
“Arsenal are not paying what Valencia want which is near €40m. Valencia are also saying they do not want to sell a key player in the last week of the transfer window. Arsenal say they do not want to pay ahead of his real value. So that is where we are.”
Arsenal have been linked with a host of different players in the summer transfer window but Wenger has only made three new additions so far.
The Gunners boss snapped up Switzerland international Granit Xhaka in a £33m deal from Bundesliga side Borussia Monchengladbach before he also signed Japanese forward Takuma Asano and Rob Holding.
MORE: Man United latest news
MORE: Arsenal latest news
MORE: Chelsea latest news
MORE: Liverpool latest news