Tottenham are still said to be interested in the Southampton man by the Telegraph but are set to be snubbed, with the Gunners leading the race for the 25-year-old's signature.
The Saints reportedly want £25m for the Frenchman, although the deal could raise to £30m, it is claimed.
Both Tottenham and Arsenal have been linked with a move for Schneiderlin for some time now, despite Southampton offering him a new contract. The South Coast club are said to be more than prepared for any potential exit.
This latest Schneiderlin update, however, is in direct contrast to a recent Daily Mail report that stated Tottenham are in a strong position to sign the Southampton midfielder, as Arsenal are less interested due to the resurgence of Francis Coquelin.
The Telegraph, too, suggest any Arsenal - Schneiderlin deal could 'hinge' on Arsene Wenger's feelings towards Coquelin as an alternative, although they emphasise the fact that the Gunners - not Spurs - are in 'pole position.'
Southampton, meanwhile, are said to have been scouting for replacements for quite some time.