The left-back was deemed surplus to requirements during the back end of last season, and he was loaned out to his former club Schalke.
Schalke could not afford to sign him permanently. Having entered the final year of his £100,000-per-week deal, the Gunners have now agreed to release him.
The Bosnian has agreed to give up part of his final year wages. He is expected to join Fenerbahce on a two-year contract worth £1.55 million annually.
The Turkish outfit will have the option to extend his stay for another 12 months. They are set to secure his services under Mesut Ozil’s recommendation.
The Gunners were content to loan out Kolasinac during the second half of last season despite lacking a specialist back-up option for Kieran Tierney.
They have filled the void with the recent purchase of Nuno Tavares. The onus is now on reducing the squad numbers, and Kolasinac appears set to make way.
He may not be the only player heading for the exit door this month. Willian, Lucas Torreira, Hector Bellerin, Ainsley Maitland-Niles and Eddie Nketiah could all leave.
The Gunners have spent around £130m on five signings this summer. Any further transfer business may depend on outgoings before the August 31 deadline.
The club are not actively pursuing any players at the moment, but it has previously been reported that a new striker and right-back are among the priorities.
Stats from Transfermarkt.com