A move to the Premier League was thought to be on the cards with Veiga available for his £34.4million release clause.
However, Saudi champions Al-Ahli have swooped for the youngster to add to their big-spending summer having already signed Edouard Mendy, Riyad Mahrez, Roger Ibanez, Allan Saint-Maximin, Franck Kessie and Merih Derimal from European clubs.
According to transfer journalist Fabrizio Romano, a medical has been booked for Veiga to take place on Thursday after an agreement over his switch was reached with the player and both clubs.
Arsenal would likely need to sell before they can buy with rumours of Thomas Partey’s exit now extinguished.
Liverpool have reportedly seen a bid for Fluminense midfielder Andre Trinidade knocked back as they look to complete their summer business.