According to German media outlet, Die Welt, Arsenal target Gustavo has agreed a move to Wolfsburg.
The Brazilian has become surplus to requirement at Bayern Munich, following the arrival of Thiago Alcantara from Barcelona and looks set to leave the Allianz Arena.
The Gunners had tabled a bid of around £17 million for the midfield enforcer and Gustavo himself had spoken about how he would love to play for them.
However, the newspaper is reporting that the 26-year-old has decided to remain in the Bundesliga. The player is expected to speak about his future on Thursday.
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