It is understood that a fee of around £12m has been agreed for the French right-back, who is eager to leave St James’ Park to sign for the Gunners.
Arsene Wenger has been heavily linked with Ivorian star Serge Aurier in recent weeks as he plots for life after Bacary Sagna – who has joined Manchester City of a free transfer – but Toulouse’s hardball negotiation style is thought to have deterred the Emirates Stadium chief.
Debuchy is said to be a more appealing option, with the 28-year-old possessing good knowledge of the Premier League.
The ex-Lille man has been a Magpies star since January 2013, and was one of the team’s better performers during the underwhelming end to last season.
Wenger is believed to have around £100m at his disposal for the coming months, and also has his eye on attacking additions.
Alexis Sanchez of Barcelona is seen as a target, but Manchester City and Liverpool are keen on the Chilean as well.