Although the Uruguay international has been contracted to the Gunners since 2018, he has not made a competitive outing since 2019-20.
Instead, the 26-year-old has spent periods out on loan at Atletico Madrid and Fiorentina, the latter of those stints being expected to lead to a permanent stay.
However, Arsenal and the Italian outfit failed to reach a compromise over a fee, leaving both the Premier League side and the player to remain patient in a bid to resolve his future.
With just a year remaining on Torreira's contract, Arsenal need to be realistic with regards to a transfer fee, particularly with Mikel Arteta already being well stocked for options in that area of the pitch.
However, according to transfer expert Fabrizio Romano, Galatasaray have emerged as the favourites to sign Torreira during the current transfer window.
Romano says that the Turkish giants have put forward a proposal for a permanent deal, which Arsenal are prepared to accept in order to help balance the books.
Torreira must now decide whether he is happy to agree personal terms with Galatasaray, who are rebuilding after a desperately poor season last time around.
New head coach Okan Buruk has already moved to sign the likes of Leo Dubois and Sergio Oliveira from Lyon and Porto respectively.
From Arsenal's perspective, any sale would be regarded as a significant positive as Arteta weighs up whether to make further additions.
Despite having already attracted the likes of Oleksandr Zinchenko, Fabio Vieira and Gabriel Jesus to the Emirates Stadium, the Spaniard has acknowledged that Arsenal remain in the market for fresh faces.
Speaking to reporters over the weekend, Arteta said: "We are still hoping to do something else if the market allows.
"You have seen some movement in the last few days as well. We want to get the perfect balance and the plan we wanted from the beginning. Whether we accomplish that or not is another story."
Arsenal are now preparing for their first Premier League fixture of the season, which will be take place at Crystal Palace on Friday evening.