According to the report, Arsenal are set to conclude a €22 million (£17.3m) deal with financially unsettled Malaga for the 27-year-old. Cazorla is eager to move with players' wages having gone unpaid at the La Liga outfit. Despite being bankrolled into the top four in Spain by the club's Qatari owners, the money has dried up at Malaga in recent times.
While talks are now believed to be taking place to sell the club, Sky Sports states that such moves will not affect Cazorla's departure.
Just yesterday, however, the Daily Mirror claimed that a takeover of the club would threaten Arsenal's hopes of singing Cazorla. With the Spain international said to be trying to push through a move, though, Arsenal look set to complete the exciting signing imminently.
While the likes of Manchester United, Chelsea and Manchester City have all splashed out fees in excess of £30 million, Arsenal's record transfer remains the £15 million paid for Andrey Arshavin in January 2009.
With Arsenal set to spend big on Cazorla, there appears to be little chance of the club following up their reported interest in Brazilian playmaker Paulo Henrique Ganso. The 22-year-old is known to have been unsettled with current club Santos in recent times and has endured a disappointing year on the field since being hailed as the next big star of Brazilian football.
Arsenal are said to have been trailing Ganso, but Santos appear keen to hold onto the player, unless a club matches his massive buy-out clause of in excess of £40 million.
"Bring the offers, but we won't accept anything less than his buy-out fee," said Santos president Luis Alvaro de Oliveira Ribeiro, according to Sky Sports.
"The player's will always has to come first. It's pointless to keep an unhappy player. I always respect the player's will. I did that regarding Wesley, Andre, Jonathan, but Santos' rights have to be respected, as per the contracts that were signed."
In contrast Arsenal have received encouragement should they be looking to strengthen their defense this summer. The Daily Mail reports that Mamadou Sakho, said to be a long-standing target of the Gunners, has been told that he can leave Paris Saint-Germain this summer.
The big spending French club have signed a succession of center-backs in the past year, most recently adding former Milan star Thiago Silva. Such recruitment has left Sakho out of favor in the French capital and reportedly considering his future.
Although a France international, given his recent dip in form Wenger may be reluctant to disrupt a burgeoning center-back partnership between Thomas Vermaelen and Laurent Koscielny.
As well as adding to their squad Arsenal may also have to fight off interest in some of their existing talent. Reports in recent days have suggested that Barcelona could be set to make a move for key midfielder Alex Song.
The Daily Mail claims that the Catalan giants are set to make a £12.5 million offer for the Cameroonian 24-year-old. The move makes sense given that Barcelona have lost Seydou Keita this summer. However, Arsenal are likely to be extremely resistant to allow Song to leave and it would take a much larger offer for the matter to even be considered.
With no sign that Song is looking to depart, it would be a major surprise were he to leave the Emirates this summer.