Despite having three years left to run on his contract, the 30-year-old is expected to leave PSG in the coming days.
PSG have told Verratti that he is no longer part of their plans, and as a result, they are looking to sell him before the end of the transfer window.
Verratti was expected to complete a move to Al-Hilal, but the Saudi Arabian club were unable to complete the deal after using all of the funds allocated by the Public Investment Fund for the current transfer window.
According to Foot Mercato, the French champions have now accepted a bid from Al-Arabi for the France international.
While Verratti is keen to remain in Europe, Al-Arabi are hoping to convince the 30-year-old to join the Qatari Stars League.
During his 11-year stay in the French capital, Verratti has made 416 competitive appearances, chipping in with 11 goals and 61 assists.
Meanwhile, Fulham are reportedly ahead of Manchester United in the race for Tottenham Hotspur defender Sergio Reguilon.
Reguilon, who spent last season on loan at Atletico Madrid, is likely to leave Spurs before the transfer window closes on Friday.
The Spaniard has been identified as a potential target for Man United, who are looking to sign a new left-back following an injury to Luke Shaw.
However, according to The Telegraph, Fulham are also interested in Reguilon and are currently leading the race to secure his signature.
Fulham boss Marco Silva has made it clear that he wants the club to make five signings before Friday's transfer deadline, including two full-backs.
With the Cottagers set to sign right-back Timothy Castagne from Leicester City, the addition of Reguilon would strengthen the left side of their defence.
Should Reguilon complete a move to Craven Cottage, he would provide competition for the club's current first-choice left-back Antonee Robinson.
Elsewhere, Nottingham Forest are reportedly set to table a bid for Leicester City midfielder Wilfried Ndidi.
The 26-year-old has emerged as a transfer target for Steve Cooper's side, who are hoping to sign a central midfielder before the transfer window shuts.
According to journalist Fabrizio Romano, Forest are preparing to submit a formal offer for the Nigeria international.
Ndidi is keen to complete a move to the City Ground and has already agreed personal terms with the Premier League club.
With less than 12 months remaining on the player's contract, Leicester could decide to cash in and sanction a departure.
Despite facing an uncertain future, Ndidi has not missed a game for Leicester this season, helping Enzo Maresca's side claim five consecutive victories across all competitions.