The Sun report that Napoli were also interested in the 18 year old, but it seems Barca are in pole position to land the young Gunners star.
Arsenal were said to be hopeful of keeping McGuane, using the prospect of game time on loan at another club as motivation to stay at the Emirates.
Rangers were the team most likely to have signed McGuane if he remained at the Gunners, but it seems the midfielder will turn down the move to Ibrox in order to play in Spain.
The England Under 19 international will likely play for Barcelona B if he does make the switch to the Camp Nou. The Catalan club’s second team play in the Spanish second division, currently sitting 18th in the table.