Bayer Leverkusen have emerged as front-runners to land Kolasinac, BILD reports.
The German outfit is reportedly making moves to reach an agreement with Arsenal for the 27-year-old which is expected to be concluded in subsequent days.
The Bosnian left-back is said to cost Bayer Leverkusen about £7m which is relatively low but Arsenal might be concerned about his wage.
The former Schalke man also occupies a non-homegrown spot in the squad which the Gunners are going to need should Houssem Aouar make the switch to London.
Kola has previously been linked with a return to Schalke (they baulked at his wage demands) and a switch to Roma, who were in the market for a left-back.