The report claims that the Gunners have transfer listed Podolski along with David Ospina, Joel Campbell and Mathieu Flamini.
Galatasaray have been closely linked with the Germany international over the last few seasons and Podolski recently stated that he does want to play for the Lions.
The Istanbul giants have agreed personal terms with Podolski according to Eurosport TR. The World Cup winner will earn a total of €4.5 million per season (including bonuses) which would put him on par with Wesley Sneijder.
The 30-year-old striker currently earns €3.25 million per season at the North London based club.
Galatasaray manager Hamza Hamzaoğlu recently underlined that he would like to see the German international join the club.
The Lions would be able to offer Podolski a lucrative salary as well as first team and Champions League football.