The Gunners have reached an agreement to name Andrea Berta as the long-term replacement for Edu.
The Brazilian left the club back in November with the north London side spending time searching for his replacement.
While Arsenal hope Berta will be the man, reports in Italy have suggested that their move could be scuppered.
According to Corriere della Sera, AC Milan are also interested with Arsenal having to fend off a late approach.
It's reported that Milan are looking to hijack the deal with Berta their 'favourite' candidate for the same role at the San Siro.
READ MORE ON ARSENAL
Stuart Pearce gives health update to talkSPORT after scare on Las Vegas flight
Simon Jordan hits back at Roy Keane questions over Arsenal mentality
Arsenal's search for a sporting director comes as they aim to replace Edu, a man who held the position for five years having joined the club in 2019.
Interim sporting director Jason Ayto had been a candidate for the role along with former Gunners midfielder Tomas Rosicky.
Former Manchester United sporting director Dan Ashworth was also linked with the role having suddenly left Old Trafford in December.
But it's Berta who is the man lined up for the job.
Most read in Football
Liverpool could axe five players this summer in a major Arne Slot overhaul
Stuart Pearce gives health update to talkSPORT after scare on Las Vegas flight
Pochettino's US national team 'would beat all but three Premier League teams'
Rice slammed for celebrating tackle against Man United's 'worst ever striker'
Berta is closing in on a move to Arsenal after leaving his previous position with Atletico Madrid.
The Italian spend 12 years with the Spanish giants but left the club in January this year.
Working alongside Diego Simeone, Berta helped Atletico to a glut of trophies including two LaLiga titles and the Europa League.
In that time he was responsible for completing a number of major transfer deals.
His notable signings also include Joao Felix, Kieran Trippier, Luis Suarez, Julian Alvarez and Conor Gallagher.
He also oversaw the sale of Antoine Griezmann to Barcelona for £99million in 2019 before re-signing him for £18million four years later.
Most notably, Berta was responsible for completing a £16.5million deal to sign Rodri from Villarreal back in 2018.
The reigning Ballon d'Or winner made 47 appearances for Atletico before being sold to Man City for a fee of £58million a year later.
Since then Rodri has gone on to win 11 trophies with City, including the treble, and won the Ballon d'Or in October.
Having started his career in his native Italy with Carpendolo, Berta has also worked with Parma and Genoa in the past.
He was also named 'sporting director of the year' at the Globe Soccer Awards back in 2019.
The award has also been won by former Tottenham director Fabio Paratici and outgoing City chief Txiki Begiristain.
Check out all the best Cheltenham Festival free bets and offers at our dedicated page