It is now seen as highly unlikely that Arsenal would be able to come to an agreement with Juventus' Max Allegri and in the meantime talks with Arteta and his representatives have reached the point where he has named potential staff and the financial package required.
Cazorla, who has been at Arsenal since 2012, has been out with a serious injury for the past 19 months.
It has been reported that Arsenal are on the verge of announcing who will replace Arsene Wenger as their manager, with the club having identified their preferred candidate - a name that may surprise many.
Another candidate was Hoffenheim's Julian Nagelsmann, but the German club recently insisted he will still be their manager next season.
"He is doing very well with New York City, and he told me the job is very hard and difficult".
Moving forward, Arteta is considered as what Arsenal are looking for in the wake of Wenger.
Vieira fears he will be overlooked and that his chance to return to Arsenal in a management position has gone.