The Gunners midfielder has agreed to spend the season on loan at the Wanda Metropolitano having fallen down the pecking order under Mikel Arteta
Lucas Torreira is on the verge of completing a move to Atletico Madrid, Goal can confirm.
The Uruguay international has been in talks with the Liga side for weeks and there is now a total agreement between the player and the club.
Arsenal have also now agreed a deal with Atletico, which will see the midfielder head to Madrid on loan for the season – the transfer will include an option for the move to be made permanent next summer
The only issue that now stands before Torreira completes his move to the Spanish capital is Atletico’s need to move a player on first.
Goal has been told that Atleti are reluctant to finalise the deal until that happens.
Ideally, Atletico would like to offload Mexican midfielder Hector Herrera, but so far they have been unable to find a taker for the 30-year-old. Herrera did hold talks with Zenit St. Petersburg, only for the potential move to fall through.
Thomas Lemar, meanwhile, is another who could leave.
The France international has endured a miserable time at the Wanda Metropolitano since his £55 million ($71m) move from Monaco in 2018.
Atletico want any deal to include an option to buy, but Munich only want to take Lemar as a short-term option to cover for the injured Leroy Sane.
There is also interest in Lemar from RB Leipzig, but the Bundesliga outfit are struggling for funds.
Should the World Cup winner leave, that would allow cash-strapped Atletico to push through their move for Torreira, who has his heart set on a switch to Spain.
The 24-year-old has yet to feature under Mikel Arteta this season, with Arsenal well aware of his desire to leave.
He is one of several players who Arsenal will sanction moves for ahead of Monday’s transfer deadline as they look to bring in cash and free up space on their wage bill.
Kolasinac trained as normal on Wednesday at London Colney and could be involved on Thursday night when Arsenal take on Liverpool at Anfield in the fourth round of the Carabao Cup.