The 21-year-old centre-half has emerged as a transfer target for some of the biggest clubs in Europe following his stellar performances at the back for Julian Nagelsmann's side.
With just a year left on his current deal, Leipzig are understandably keen to sell in order to recoup a transfer fee rather than let the France Under-21 international lose him on a free.
Manchester United, Bayern Munich and Manchester City were all said to be interested, with AC Milan also in the race.
A deal with any prospective buyer would need to be agreed soon if they cannot get the star to agree to a new deal.
However, with Nagelsmann himself even admitting his star has been unsettled by transfer speculation, the Daily Star claim the Bundesliga side have informed the Italian giants Upamecano is joining the Gunners.
Current Milan boss Stefano Poli is reportedly going to be replaced by Leipzig head of football Ralf Rangnick, who wanted to take Upamecano with him to San Siro.
But Gianluca di Marzio claims that although Rangnick is a priority, Upamecano should head to Arsenal.
The Premier League side have until June 30th to meet his £53million release clause, meaning the youngster could well join prospective Chelsea striker Timo Werner in making the move to London.
Arsenal have been given a huge boost in their race to sign Dayot Upamecano after it was claimed RB Leipzig have made a 'promise' to the north London outfit.