Guendouzi fell out-of-favour under manager Mikel Arteta following the project restart last season due to an incident after the defeat to Brighton & Hove Albion.
The Frenchman was frustrated with Neal Maupay playing a part in Bernd Leno’s knee injury and, after the final whistle, he grabbed the forward by the neck for a brief moment.
He escaped any punishment from the FA for the reaction, but Arteta was clearly not pleased and axed him from the first-team squad for the rest of the season.
Guendouzi was loaned out to Hertha last summer and it is now reported that he may not play another game for the Gunners as he is not in the plans of Arteta.
The north London side failed to negotiate a £30 million loan-to-buy option with Villarreal last summer, but they are confident of selling him for £25m later this year.
Guendouzi has 82 appearances to his name with the Gunners and has previously produced some standout performances for the Premier League club.
The 21-year-old has the potential to become a top-class midfielder, but his discipline has been a concern in his short career.
The midfielder’s preference to carry the ball often sees him squandering possession and he was recently criticised by Hertha boss Pal Dardai.
Arteta is likely to rebuild his squad after another disappointing league campaign and the club will need to recoup some funds from player sales to facilitate this.
The Spaniard will obviously look to offload their out-of-favour players first and Guendouzi may be shown the exit door.
Stats from Transfermarkt.com