The Spaniard, who spent five years at the Emirates Stadium as a player before retiring, is the odds-on favourite to be confirmed as Arsene Wenger’s successor and an announcement could be made as soon as this week.
Talks between the two parties are understood to have been very positive and Arteta is now working on his plans for his backroom staff with the 36-year-old keen to bring in at least three new coaches.
Further changes behind the scenes are expected, although it is understood Wenger’s assistant manager Steve Bould has been offered the chance to stay in a new role.
Another member of the current Arsenal squad who Arteta wants to keep around is compatriot Cazorla, who is out of contract in June.
The 33-year-old, who has not played for the Gunners for 19 months due to a catalogue of ankle issues, looks set to be offered a new deal to work as a player-coach, similar to the role Michael Carrick fulfilled last season at Manchester United.
Watford defender Sebastian Prodl will face world class opposition from Russia, Brazil and Germany after being called up by Austria.
Huddersfield have lost out to Premier League rivals Brighton for the free transfer signing of Mainz's Nigerian defender Leon Balogun.
Jean Michael Seri will be allowed to leave Nice in the summer transfer window, president Jean-Pierre Rivere has confirmed.
Captain Marek Hamsik has admitted that he could leave Napoli this summer as he has been linked with a big-money move to China.