Suarez's arrival may also help offset the summer departure of Aaron Ramsey, with the Wales global having agreed terms with Serie A champions Juventus ahead of a free transfer at the end of the season.
Ramsey is widely expected to join Serie A Champions Juventus, although Gunners boss Emery has insisted that he remains happy with the player and revealed the 27-year-old continues to train hard despite the speculation surrounding his future.
According to The Guardian, Ramsey will become Juventus' second-highest earner behind Cristiano Ronaldo by signing a five-year deal worth £140,000 (RM731,735) a week.
Speaking ahead of this weekend's clash against West Ham, the Spanish gaffer said: "I say to him everyday that we need his performance with us".
The Spain worldwide played for Arsenal boss Unai Emery while on loan at Sevilla.
It's also claimed that Suarez has been impressed with Arsenal's playing style under Emery and that has also convinced him that his future is in north London.
They are once again in the last 16 of this year's competition, where they are facing Atlético Madrid.
"We can not sign permanently".
Unai Emery has said Arsenal will be able to sign players only on loan this month.
It's believed that Arsenal are on something of a cost-cutting measure following recent big money moves for the likes of Pierre-Emerick Aubameyang and Alexandre Lacazette.
"Part of my job is that I always have to work to make myself ready, but it is not a pleasant situation". Pierre-Emerick Aubameyang and Alexandre Lacazette are good enough to grace any team in the Premier League's top six.