The 27-year-old Ivory Coast international came with huge expectations due to the £140k-a-week wage he was earning.
But his transfer was nothing short of a failure and has been marred by inconsistency.
Selling the Ivorian winger is essential for Arsenal after they spent over £200m in the summer window and needs to balance their books.
According to CBS Sports, Nicolas Pepe has been approached by a mid-table Saudi Arabian club.
Arsenal are willing to accept a nominal fee for Pepe and are even considering terminating his contract to get him off the books.
Pepe returned to Arsenal after his loan spell with OGC Nice and will decide on his future in the coming days.
“I will return to Arsenal,” Pepe said earlier this month. “I was loaned without an option to buy so I have to go back to Arsenal.
“I don’t know [about my future] yet. When I get back, I’ll speak with the coach and everyone and see what everyone’s ideas are and then we’ll make a decision.”
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