According to French-speaking news site Le Buteur, the Premier League champion is set to pen a deal with the Gunners, which is understood to be around £37 million.
The Algerian website also stated the 25-year-old winger has already agreed on personal terms with Arsene Wenger's side and his transfer fee is the only thing remaining before he departs from King Power Stadium.
However, in a general press conference, Leicester City boss Claudio Ranieri warned Mahrez from a move to Arsenal, as the 64-year-old coach believes he will be better off sticking around with the Foxes.
The Italian manager told the media:
"Mahrez for us is very important.
"If he goes into another big team, there are so many stars. Why? Stay with us, it’s much better.
"He’s our champion. If he goes to another team, there are so many champions.
"He knows me, I know him very well and I understand when he plays so-so and I can permit to stay on the pitch.
"With another manager, when he plays so-so there are so many other stars – they put him on the bench.
"It’s important you give him confidence. But if you put him on the bench he gets down."
While Ranieri has requested the PFA Player of the Year to not leave the club, the former Inter Milan chief also asserted that the Algeria international is not up for sale after Saturday's International Champions Cup win over Celtic.
