The Gunners want to sign Aubameyang to replace Alexis Sanchez, who is set to leave the Emirates for Manchester United.
Mirror Football reports the Gabon international has now sorted his contract with Arsenal, amid rumours that he has also handed in a transfer request at the Bundesliga club.
Aubameyang was banished from the team for disciplinary reasons last weekend.
It is believed the incident is the last straw for the club, as it was his third internal suspension in just over 12 months.
Aubameyang has netted 13 times in just 15 Bundesliga outings and has eight goals in other competitions.
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