The silky French playmaker has been linked with the Gunners for some time, but the Ligue 1 champions have always remained adamant that the 19-year-old will not be sold.
However with contract talks with the teenager having stalled, their stance has altered.
Rabiot is now in the final year of his current deal and is desperate to play regularly.
PSG want to keep him, but a lack of first-team guarantees have swayed the youngster towards a move.
Even though he is highly-rated, a number of experienced midfielders are currently blocking his path into the starting XI, which is a source of frustration.
The Parisians are keen to get some cash in for their man rather than let him leave for free, with Arsenal ready to pay their £5.6m demands.
Rabiot is a left-footed creative midfielder, who has long been dubbed one for French football’s future stars.