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The 29-year-old is thought to be available for a fee in the region of £15million after failing to agree terms over a new contract at the Bundesliga club.
He looks set to raid his former club again with negotiations ongoing over Papastathopoulos, who is thought to have attracted interest from other clubs in Italy and England.
Reports in Germany suggest a deal is imminent but it is understood nothing is finalised at this stage, however, and Arsenal’s incoming manager is likely to be consulted before any agreement is reached.
Former player Mikel Arteta remains the front runner for the job.