The Germany striker will sign a four-year contract at £100,000 a week.
Podolski's arrival could be read as reinforcing a shift in Arsene Wenger's transfer policy towards buying established stars.
The Polish-born striker is 26, but has been a regular in the Bundesliga since his late teens, and made his Germany debut in 2004. He has gone on to become a fixture in the national side - with 43 goals in 91 games - and has scored 92 goals in 235 Bundesliga appearances.
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