The German World Cup winner has been made available for sale this summer by Arsene Wenger, with a number of clubs reportedly interested.
However, it appears that Wolfsburg are the closest to landing the attacker and are confident of agreeing a three-year-deal with the attacker.
The Bundesliga club are battling Juventus to sign the 29-year-old, and reports surfaced last night that Podolski’s first choice would have been to join the Italian champions, but their reluctance to do a permanent deal has cost them.
Juve were keen on taking Podolski, but would only offer a season-long-loan deal and Arsenal would have preferred to keep him than allow him to leave on a temporary basis, as they still feel he has some worth to their squad.
The former Koln player was likely to play a rotational role at the North-London outfit this summer after the arrival of Alexis Sanchez in the summer.
The signing of the Chilean has left Arsenal bloated in attacking positions – with a number of players competing for limited spaces in the starting line-up.
It is also thought that with Podolski off the books, it could see Wolfsburg’s Luiz Gustavo come the other way.
The Brazilian midfield enforcer has been identified as a potential target by Arsene Wenger as he seeks to add a defensive midfielder to the squad.
Although the Gunner’s team looks as packed with quality as it has it some time, there is still room for a world-class defensive midfielder and Gustavo would certainly fit the billing.
Podolski’s depature would end his two year stay at the club, where he has made a positive impression.
Although never becoming a club legend at the Emirates he is likely to be fondly remembered after making 69 appearances and scoring 28 times for Wenger’s side.