The 32-year-old midfielder has fallen way down the first-team pecking during his four years in north London, and is expected to be shown the exit door when his contract expires later this month.
Gunners boss Arsene Wenger had high hopes for the Russia international when he first brought him to the Emirates Stadium in 2009, but Arshavin has failed to deliver consistent performances to warrant a regular place in the side, particularly in the past two seasons.
Wenger is keen to trim his wage bill this summer and make room for new recruits in the Arsenal squad, and has already released a number of fringe players.
Arshavin will be the most high-profile casualty to leave the club on a free transfer though, with the former Zenit St Petersburg star unable to find another club that will match his extortionate wage demands while he was still under contract with Arsenal.
Posting a message on his official Twitter account in May after Arsenal's final day victory over Newcastle United, which helped secure Champions League qualification Arshavin said:
"Thanks a lot to all Arsenal fans, to all my team partners, who played with me all these years, to all the staff and coaches!!! Many thanks."