The Greek defender spent last season on loan at Stuttgart and the club have been keen to keep the player for another year at least.
The 23-year-old made a solid impression on Stuttgart, leading to the Bundesliga side making an attempt to have him next term a priority.
There were claims that the club were closing in on signing him on a permanent deal, but it has been claimed that another loan deal has been agreed.
According to German daily Bild, the two clubs have worked out an agreement that would see Mavropanos spend another season on loan at Stuttgart.
The German club have also secured an option to make the move permanent at a later date.
Arsenal will receive a fee of €7m if the German club decide to trigger the option in the agreement.
Mavropanos is happy at Stuttgart and has been keen to continue at the German club next season.
And if things go according to plan, he will join Stuttgart on a permanent deal next season if he again impresses on loan.
