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Gunners boss Arsene Wenger is looking to bolster his squad over the summer as the London club plans to launch on assault on the Premier League title next season.
According to Metro, Arsenal look set to land the 27-year-old with a cut-price £10.8m deal in the summer with the Spanish international searching for increased playing time.
Pedro has struggled for minutes at the La Liga champions this season, with the front three of Lionel Messi, Neymar and Luis Suarez helping the Catalan giants to a league title and Champions League final appearance next month.
The La Masia graduate has started just 14 league games this season but has chipped in with six goals and as many assists, showing enough to suggest he could be an excellent option for Wenger next season.
Arsenal currently sits third on the Premier League table, five points behind second-placed Manchester City however the Gunners have a match in hand.