Arteta is the frontrunner for the job and is favoured by chief executive, Ivan Gazidis, who is now understood to have persuaded Josh Kroenke, son of owner Stan, about the move.
The 36-year-old will spend this week finalising the final details of his contract with the North London club.
He will also recruit his backroom staff and ensure he has the right degree of influence of transfer policy.
Arteta will have to work within a more collegiate structure than Wenger and will have a limited budget, although the expected sale of Aaron Ramsey would raise additional funds.
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