Unai Emery is set to be announced Arsenal manager by Thursday.
The Mirror says Gunners officials met with Manchester City coach Mikel Arteta last week and by Friday the former Arsenal captain believed he was going to get the job.
But Arsenal began to go quiet over the weekend and then former Paris Saint-Germain boss Emery flew into London for talks on Monday.
Arsenal chief executive Ivan Gazidis is now in negotiations with Emery and the 46-year-old Spaniard is now expected to be unveiled in the next 48 hours.
It is an incredible blow for Arteta – who is on Pep Guardiola‘s coaching staff at Manchester City – as he is believed to have interviewed well and discussed a contract.
Arsenal had prepared to offer Arteta a three year deal worth £4m-a-year with a one year break clause and the Spaniard was keen to take the job.