The 30-year-old is reportedly a front-runner to succeed Arsene Wenger after he was overlooked by Bundesliga champion Bayern Munich, which opted for Niko Kovac of Eintracht Frankfurt to replace its own veteran coach, Jupp Heynckes.
The Gunners are understood to have interviewed all of their main targets to replace the long-serving Frenchman, who will step down after 22 years at the helm this summer.
With candidates dropping by the wayside, the path appears to be clearing for Arteta to take over at the club where he spent five seasons as a player.
"Julian Nagelsmann will be our coach next season".
Former Arsenal midfielder Mikel Arteta could be named as Arsene Wenger's replacement after holding talks with the club and is considering offering Santi Cazorla the opportunity to join his backroom staff, according to the Independent.
Mikel Arteta Now The Frontrunner for Arsenal Job Posted by Daniel Jenkins
Is Arteta a good fit? He was a player who could see passes others couldn't and was respected wherever he went as he played in a more advanced role at Everton but returned to a more defensive role in central midfield at Arsenal.
Barcelona was also negotiating with Barcelona ex-coach Luis Enrique.
Lewin has been with Arsenal for 23 years and is said to be unhappy with the decision, while goalkeeping specialist Gerry Peyton, fitness coach Tony Colbert and equipment specialist Paul Johnson have also been told that they are free to find new positions over the summer.
Arteta has come out of left-field a little, especially with no prior managerial experience, but in many regards he would be the ideal choice to not only replace Wenger but keep the playing style and culture he cultivated intact.