The 27-year-old has a get-out clause in his contract which would allow him to leave St James' Park for as little as £9million.
Owen Latest - Arsenal Set To Make A Move?
Speculation grows that Sven-Goran Eriksson, who worked with the player during his spell as England boss, could try to take Owen to Manchester City should he be appointed manager.
Owen has yet to comment publicly on his future and has two years of his contract still to run.
However, manager Sam Allardyce has discussed his plans with the player, and while he admits there would be little he could do to prevent him leaving should another club trigger the clause, he will hope he has persuaded him to form a new-look strike force with summer signing Mark Viduka and perhaps Obafemi Martins.
But Arsenal have confirmed they have reached an agreement with Barcelona for the transfer of Thierry Henry, subject to a medical and the completion of formalities. And we all know the Gunners see Owen as a target should Henry move on.
The Spanish club's vice-president Ferran Soriano confirmed on Friday night that talks with the France striker over a reported £16million deal were at an "advanced" stage.
And a statement on the Gunners' official website read this morning: "Arsenal Football Club can confirm that it has reached an agreement with Barcelona for the transfer of Thierry Henry.
"The deal is subject to a medical and the completion of formalities."