Cazorla has been regarded as a fans' favourite ever since moving to the Gunners in 2012, but the playmaker has not featured since October 2016 due to a long-standing Achilles injury.
During the closing weeks of the campaign, Cazorla made a return to training, but the Spaniard failed to make an appearance for the North London outfit.
The 33-year-old's contract expires at the end of June, and Arsenal have moved to reveal that the long-serving player will move on upon the completion of his deal.
Cazorla will leave Arsenal having scored 29 goals from 180 outings, while the FA Cup was also won in 2014 and 2015 respectively.
La Liga outfit Villarreal have been linked with an approach for Cazorla.