Ivica Olic looks to be on his way back to Hamburg, with Andre Schurrle increasingly likely to join Wolfsburg.
The Spain midfielder is in London finalising his move and Press Association Sport understands he will be part of the Gunners squad which travels to Germany for a training camp next week if, as expected, the deal is formally completed by then.
Arsenal will take on Cologne next Sunday in a friendly arranged as part of the deal which brought Lukas Podolski to the Emirates Stadium.
The club have not yet been able to formally announce the signing of Cazorla owing to complications caused by the financial plight of his current club Malaga, but the Spanish side's problems are not expected to jeopardise the completion of the deal.
The recruitment of Cazorla would be the third major piece of transfer business completed by Arsenal in the close season, with Podolski and Montpellier forward Olivier Giroud also coming in.
They have also been heavily linked with Real Madrid midfielder Nuri Sahin, with Real boss Jose Mourinho saying the player can leave the Bernabeu.
Cazorla was part of Spain's victorious Euro 2012 squad, but only featured for 16 minutes during the tournament in Poland and Ukraine.
He was Malaga's flagship signing of last summer but the club are experiencing severe financial difficulties and look set to offload a number of big names before the new Primera Division campaign begins.