Manchester City assistant Mikel Arteta was strong favourite to succeed the outgoing Arsene Wenger.
But following a thorough recruitment process that involved all candidates being spoken to, Emery emerged as the unanimous choice.
The 46-year-old Spaniard is available after leaving Paris St-Germain where he won one Ligue 1 title and four domestic cups in two seasons in charge.
Previously he guided Sevilla to three consecutive Europa League triumphs between 2014 and 2016.
He announced last month he would leave PSG when his contract expired at the end of the season and was replaced by former Borussia Dortmund boss Thomas Tuchel, who had also been linked with the Arsenal job.
Emery’s English is not completely fluent but the language barrier is not expected to be a problem.
An announcement and news conference are expected later this week.
The recruitment process was led by Arsenal chief executive Ivan Gazidis, head of football relations Raul Sanllehi and head of recruitment Sven Mislintat.