The youngster’s contract at Arsenal will end after the 2018/19 campaign and negotiations over a potential new deal at the Emirates have collapsed.
Nelson looked set to commit his future to Arsenal towards the end of last season but, the newspaper now reports that the England Under-19 international is set to join the German club side before transfer window closes on Friday.
The promising 19-year-old forward was handed his first-team debut by Arsene Wenger last July and went on to make 16 appearances in all competitions.
However, Nelson is yet to feature under Unai Emery since the Spaniard’s arrival earlier this summer.
Wenger had backed the player to become a Premier League star before he stepped down as manager.
“He has the technical ability needed in the Premier League,” he told Sky Sports ahead of Nelson’s first start against Southampton.
“He can run at players, he can dribble – you don’t find that a lot. As well as link-up play we want to play, I believe he has that. It’s a good opportunity for him, let’s see how he does.”
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