Arsenal are understood to have agreed a fee of about £7m for Guendouzi, who has been with Lorient since 2014.
Some reports in France allege that a five-year deal has also been agreed between the two parties, leaving only a medical to complete before the contract can be tied up.
The 19-year-old is now expected to fly out to London on Monday to put the finishing touches to the transfer, which would see him become Arsenal's fourth summer signing.
New Arsenal boss Unai Emery has already brought in Bernd Leno, Stephan Lichtsteiner as well as Sokratis Papastathopoulos since arriving at the club, while Uruguay midfielder Lucas Torreira is thought to be close to a move to the Emirates too.
Guendouzi has previously been linked with Gunner's North London rivals Tottenham Hotspur.
This article was most recently revised and updated 4 years ago