The forward made his debut for the club earlier in the season and Arsenal have been keen to keep the player at the Emirates.
His contract is up at the end of the ongoing campaign and talks took place between Arsenal and his representatives over a deal, but an agreement could not be reached.
Mikel Arteta has blamed his agent for the lack of an agreement over a new deal and it has been claimed that Balogun is now expected to leave the Gunners in the summer.
It has been claimed that the forward is close to working out terms on a pre-contractual agreement with a foreign club.
There has been speculation about clubs in England wanting to sign him in the summer but it seems he will be leaving British shores.
The 19-year-old is expected to agree on the pre-contract with the unnamed club soon and pave the way for his Arsenal exit.
The youngster has been concerned about his game time at Arsenal where he has made just five substitute appearances in cup competitions this season.
It remains to be seen whether Arteta gives Balogun any more appearances once it becomes clear that he is on his way out in the summer.