They are buying the Denmark youth international for a club-record fee, and a sell-on clause has been included in the deal, which will see the Gunners profit from any future sales.
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Biereth was with Sturm Graz during the second half of 2023-24 having spent the first half on loan in the Scottish Premiership with Motherwell.
The 21-year-old joined Arsenal from Fulham in July 2021 after ending the campaign with 21 goals in 21 games for their under-18s, but he was unable to force his way into the first-team, failing to make a competitive debut.
Biereth helped the Austrian club land the top-flight title last term having netted nine goals and four assists in all competitions, and his performances were enough to earn him a permanent move.
With the likes of Kai Havertz, Gabriel Jesus and Eddie Nketiah competing for a spot as the first-choice striker, getting a chance from manager Mikel Arteta was always going to be tough for the England-born Danish.
Biereth impressed at Motherwell, scoring six goals and assisting another five, but it was not enough to convince the first-team coaches at the North London club.
He will get a chance to play Champions League football next season and prove what he is capable of doing at the biggest stage having impressed in the Conference League last term with three goals in four appearances.
Biereth recently dubbed himself a lower-version hybrid of Erling Haaland and Harry Kane, revealing he dreams of scoring regularly for Arsenal going forward, but he will not be getting a chance to do that and will have to show what he is worth elsewhere.
The youngster has the potential to become a world-class striker despite getting sold by the Gunners, and the club will not be losing if he earns a big-money move next due to the sell-on clause in his deal.
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