The Germany playmaker's current deal expires in the summer and he has been stalling over extending his stay at the Emirates.
But according to trusted German publication Bild, the World Cup-winning ace is now poised to put pen-to-paper on a new long-term deal.
Ozil is said to be excited by the prospect of linking up with Pierre-Emerick Aubameyang.
Borussia Dortmund striker Aubameyang is set to complete his club-record move from the Emirates on Wednesday ahead of the 11pm transfer deadline.
Ozil's new deal is reported to be worth around £300,000-a-week.
It will come as a huge boost to Arsene Wenger, who was forced to sell Alexis Sanchez to Manchester United earlier this month after he rejected a contract extension.