Soares currently has six months left on his current contract at Southampton.
The Gunners are prepared to pay £3m plus bonuses for the 28-year-old fullback.
Arteta is keen to strengthen in the full-back position, after Palo Mari arrived this week from Flamengo.
Southampton manager, Ralph Hasenhuttl, seemed to confirm Soares’ imminent departure on Thursday.
When asked if the arrival of Kyle Walker-Peters from Tottenham meant Soares was now likely to leave, Hasenhuttl said: “From our side, yes. The fact is that he’s out of contract in the summer.”
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