The versatile full-back is deemed surplus to requirements at the Emirates.
Sky Sports reckon Watford are closing in on his signature.
But it's suggested West Brom and Newcastle have also been monitoring his availability.
Vicarage Road looks his most likely destination - but the Hornets won't be able to match his pay packet at the Emirates.
Sky Sports say new Watford boss Marco Silva is keen to increase the number of English players in his squad.
Gibbs didn't feature for Arsenal in the Emirates Cup this weekend.
The England international has spent ten seasons in the Arsenal first-team squad.
He's racked up 230 appearances in all competitions and scored six goals.
Nacho Monreal was favoured at left-back last season.
Arsene Wenger has snapped up Sead Kolasinac from Schalke this summer.
The Bosnian is expected to battle Monreal for a starting spot in the team.
