The North London outfit have been hunting for a successor to Arsene Wenger, who resigned from his position at the end of the season following a 22-year spell in charge.
Former Arsenal midfielder Mikel Arteta, who spent six years at the club before retiring and joining Manchester City's coaching staff, was thought to be the frontrunner.
However, according to BBC Sport, the club's board have opted to hire Emery, who was sacked by PSG earlier this month despite guiding the club to the Ligue 1 title.
The report claims that Arsenal's hierarchy unanimously agreed on appointing Emery, who won five trophies during his two-year stay at the French outfit.
Prior to that, the 46-year-old coached Sevilla for three years, during which he scooped three Europa League crowns.