The Uruguay international has struggled to cement his place in the team at the Emirates Stadium under Mikel Arteta, having joined from Sampdoria in 2018.
With Torreira determined to return to Italy, the Guardian reports that Arsenal will relent on their initial stance of seeking a permanent sale and will allow him to depart on loan.
The Gunners value the midfielder at €19.5 million, but a desire to free up space in their squad for potential targets, including Thomas Partey and Houssem Aour, of Atletico Madrid and Lyon respectively, mean a short-term departure in the first instance will be sanctioned.
Torino are battling with Fiorentina for the 24-year-old’s signature, with both sides keen to snap him up on loan with a view to a permanent deal next summer.
Torreira has scored four goals in 89 appearances for Arsenal, but was left out of their opening Premier League fixture against London rivals Fulham on Saturday, with Mohamed Elneny favoured in the 3-0 victory.