Spanish media outlet Marca says, the Spanish International is set to sign a three-year deal with La-liga side Athletic Bilbao.
Monreal who had previously represented La-liga sides Osasuna and Malaga would fancy a return to his native country.
Negotiations on a contract extension between the defender’s representatives and Arsenal is said to have been put on hold for sometime now, and Bilbao are supposedly seeking to take advantage of the situation to land the 29-year-old.
Athletic Bilbao have been monitoring Monreal’s situation for a while now and are ready offer £6million for a three-year deal.
Monreal is currently away with Arsenal’s squad for their pre-season tour of Singapore, but the Gunners are already said to be in talks with Napoli for defender Faouzi Ghoulam as his replacement – with the only delay in the deal being Arsenal’s unwillingness to meet the Italian side’s £8.6million asking price.
Monreal, joined Arsenal in January 2013 from Malaga for £8m and had a remarkable season last term where he notched up 39 appearances – with some of them being as a makeshift center-back.
One of his highpoint last season was scoring in the 2-1 victory over Manchester United in the FA Cup quarter final at Old Trafford.