The Magpies have reportedly agreed a £6.7m fee with Montpellier for the French centre-back, who is due to travel to St James’ Park to negotiate a move in the coming days.
However, the Gunners are believed to be firmly in race for the 23-year-old, and could make a rival bid to snatch him away from Alan Pardew.
This would come as a real blow for Newcastle, who were believed to have a deal for Loic Remy wrapped up last week as they searched to replace Demba Ba.
But, QPR offered the striker superior personal terms, leaving the Tyne club short of attacking options.
They could now face a similar fate, as they look to find a replacement for wantaway defender Fabricio Coloccini.
Wenger is believe to have some reservations about Yanga-Mbiwa, but could shelve these in fear of losing out on a long-term target.
AC Milan are also interested, but it is thought the battle for his signature is between the Premier League duo.
Pardew seen Yanga-Mbiwa as the ideal addition to his stretched squad, with the defensive man able to fill in at centre-back, full-back and in a holding midfield position.