Arsenal's Gnabry poised to join Bremen

"We have an agreement in principle with Arsenal, but it is not yet signed," Bremen boss Frank Baumann told reporters.

"We have agreed terms with the player and I really think it will happen."

Bremen expect the deal to be sealed before the transfer deadline closes on Wednesday at 2200 GMT.

Baumann rubbished earlier reports that Bayern Munich were set to permanently sign Gnabry, then send him on loan to Bremen.

The 21-year-old played all six matches for Germany at the Rio de Janeiro games as his side lost the final to Brazil on penalties.

Having joined the Gunners in 2011 from Stuttgart's academy, Gnabry spent last season on loan at West Bromwich Albion and has only made a handful of Premier League appearances for Arsenal since 2012.

Bremen badly need reinforcements after being drubbed 6-0 by defending champions Bayern Munich last Friday on the opening weekend of the new Bundesliga season.

The hammering came less than a week after their shock German Cup defeat at third-division Sportfreunde Lotte.