Arshavin has been marginalized at the Emirates Stadium this term and came close to leaving over the summer after spending much of last season on loan at former club Zenit St. Petersburg.
The Russian has made just six appearances in the Premier League for Arsenal this season and appears to be on the verge of leaving the club, with Reading set to pounce.
According to Goal.com the Royals have negotiated a fee in the region of £4 million for the 31-year-old, almost £11 million less than he cost when he arrived at Arsenal in 2009.
The website claims that while there is still some difference in opinion over the Russian’s fee, he should complete the move to Reading early on in the transfer window.
The deal has been sanctioned by Russian owner Anton Zingarevich, who is reportedly ready to splash the cash in January in order to help bolster Reading’s push for Premier League survival.
A key factor in the move is said to be the fact that Arshavin and his family are settled in London and would like to stay put in the capital if possible.