The 19-year-old French defender was a €30m purchase for Arsenal from Saint-Etienne, but he made little impression on Mikel Arteta in the first half of the season and yet to feature for the Gunners.
The north London club have agreed to loan him out to another French club in Nice for the rest of the season with a view to him playing more senior football.
There is no purchase agreement in the deal between the two clubs as Arsenal believe that Saliba is a still a talented young player and could have a long term future at the Emirates.
But the defender might not return to Arsenal at the end of the season as well, as according to French sports daily L’Equipe, his loan deal could be extended by another year at Nice.
It has been claimed that if things go according to plan, the Frenchman is likely to stay at the Ligue 1 one club for one more season.
It is unclear whether Nice have retained such an option, but the loan deal could be effective for 18 months.
The French club are pleased to have Saliba on loan, especially as they needed to bring in a centre-back to replace Dante, who has been ruled out for the season due to an injury.
The young defender will hope to prove himself at Nice after enduring a difficult few months at Arsenal.
