Holding has not featured for Arsenal this term and does not feature in the plans of manager Mikel Arteta.
The former Bolton Wanderers star is one of the longest-servicing players at the North London club having joined them in 2016.
The 27-year-old has played 162 games across all competitions for the Gunners, with his most appearances coming in the 2020-21 campaign, when he played 39 games across all competitions.
Arsenal have loaned out Kieran Tierney to Real Sociedad while Auston Trusty was sold to Sheffield United earlier this summer, but they still have enough options at the back despite the imminent departure of Holding and the long-term unavailability of Jurrien Timber due to an injury.
The likes of Oleksandr Zinchenko, Gabriel Magalhaes and Jakub Kiwior are yet to taste regular action this term, while under-23s star Reuell Walters has been tipped to be promoted to the first-team if need be.
Gunners manager Mikel Arteta has said that he is not expecting any new signings today, and Holding is unlikely to be the only player leaving before the deadline tonight.
Nicolas Pepe, Albert Sambi Lokonga and Cedric Soares are also surplus to requirements and could still leave even after tonight, with the transfer windows in other countries like Saudi Arabia not closing until later this month.
Arsenal are challenging across four competitions this term and could decide to further bolster their squad when the transfer window reopens in January if need be.
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