Leno has been operating as the second choice goalkeeper at the Emirates Stadium and is keen to make sure he is playing regular football this season.
Fulham have been looking to snap him up and now they have agreed a fee with Arsenal for the German to head to Craven Cottage.
It is expected that the shot-stopper will be put through his medical paces by Fulham next week.
With personal terms already agreed between Leno and Fulham, if he passes his medical he will then put pen to paper to a contract at Craven Cottage.
Fulham will fork out around £8m to sign the goalkeeper.
Leno played in just four Premier League games for Arsenal over the course of last season.
Fulham have snapped up three players on permanent deals so far this summer and Leno will become the Cottagers’ fourth permanent arrival.