The hitman is firmly out of favour at Arsenal and the club are keen to shed his £350,000 per week salary before the transfer window closes at the end of the month.
Al Hilal have offered to sign Aubameyang on a loan deal until the summer and are prepared to pick up all of his wages.
They would also reserve an option to buy in the summer if he impresses in Saudi Arabian football.
Arsenal want Aubameyang to accept the proposal on offer from the Saudis, but the striker is not keen on the switch to the Middle East.
If he leaves Arsenal then Aubameyang would prefer to remain in Europe.
He has scored seven goals in 15 appearances for the Gunners so far this season, along with providing two assists for his team-mates, but has not played for the club since early December.
Aubameyang could decide to sit on his contract at the Emirates Stadium until it expires in the summer of 2023.
