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The clubs have been locked in lengthy talks over a fee for the 16-year-old, raising the prospect of it going to a tribunal.
However, progress has been made and Arsenal are expected to reach a full agreement to bring Monga to north London.
The move has not yet been concluded but it is likely a deal worth over £10million will soon be wrapped up for the winger.
On the move: Arsenal are set to sign Leicester wonderkid Jeremy Monga
There has never been a concern over personal terms and Monga will be able to sign a professional contract when he turns 17 on July 10.
The teenager is likely to join up with Arsenal in pre-season and be assessed by Mikel Arteta before a decision is made about what is best for his development.
With Arsenal pushing to add a marquee signing like Morgan Rogers to their forward options, Monga would likely find first-team opportunities limited and a loan could be considered.
Arsenal are continuing their push to recruit some of the brightest prospects across England and Europe and Monga falls into that category.
Leicester have had to reluctantly accept Monga will leave the club this summer to ease their financial position after relegation to League One.
Monga made his Premier League debut for the Foxes under Ruud van Nistelrooy at the age of just 15 years and 271 days in April 2025.
That puts him third in the list of youngest players ever to feature in the competition, behind only Arsenal duo Ethan Nwaneri and Max Dowman.
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Monga made 27 appearances in the Championship for Leicester this season. He came off the bench to register his first goal for the club against Preston and became the Foxes' youngest-ever goalscorer.