Yesterday, it was reported that Gnabry was going to join Bundesliga champions Bayern Munich before being loaned out to Werder Bremen.
However, these reports were wide of the mark and Gnabry has joined Werder Bremen on a permanent deal.
The winger claimed that his German team-mates at Arsenal - Per Mertesacker and Mesut Ozil - helped him make the decision.
"Per Mertesacker and Mesut Ozil have only said positive things about the club," he said.
"I'm confident we'll have a successful season and push for the top half of the table.
"I had very good talks with the management and that has led me here".