Everything is in place for him to sign with Arsenal, following in the footsteps of Takehiro Tomiyasu, who joined the North London side last summer.
Arsenal have spoken to Bologna for the last five days regarding the signing of the 19-year-old, with them agreeing on a £21 million fee to sign the Scottish international.
Napoli were also interested in him, but Arsenal convinced Hickey to join them instead.
Bologna also were not keen to sell an important player to another team in their league.
Arsenal are now preparing their official offer, which will then be accepted by Bologna, with there being no problem with the player on personal terms and agent fees as well.
Arsenal will now push to finalise the deal of Gabriel Jesus from Manchester City, with them set to have a busy summer.
Hickey has played in 35 games for Bologna this season, predominantly as a left wing-back, while also featuring as a left-back, right-back and as a right wing-back, scoring five goals and providing one assist in the process.