There had been a small hold up between both clubs, but it has been resolved and a formal announcement confirming the deal is expected shortly.
Runarsson has fallen further down the pecking order at Arsenal following the arrival of David Raya on a season-long loan from Brentford.
The 28-year-old Iceland international joined the Gunners from Dijon in 2020, spending 2021-22 on loan with Belgian First Division A club OH Leuven and was with Turkish Super Lig outfit Alanyaspor last term.
Runarsson played six games for Arsenal across all competitions in his debut campaign and is in the final 12 months of the four-year deal he signed upon joining the club.
The Icelandic goalie is likely to have played his last game for the Gunners having not featured since 2021, and he could seal a permanent move to Cardiff City should he impress.
The Welsh club are eyeing Premier League promotion having struggled to get back up since getting relegated in 2018-19, and Runarsson will look to help a side that have struggled to stay up in the Championship in recent seasons.
Arsenal have sold Granit Xhaka, Matt Turner and Auston Trusty so far this summer, while Marquinhos has left on loan, but more departures are expected in the coming days.
They have signed four players thus far, but further arrivals are expected as they look to go one better in the Premier League this term after finishing second behind Manchester City last season.
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