The Spaniard emerged as the shock favourite earlier this week after it had appeared former Arsenal captain Mikel Arteta was in line to land the job.
Wenger departed at the end of the season following a 22-year reign, with the club finishing sixth in the Premier League - 37 points behind champions Manchester City - and failing to qualify for the Champions League.
Emery, who will be unveiled at a press conference at the Emirates on Wednesday afternoon, will work in a head coach capacity at Arsenal.
Arsenal majority shareholder Stan Kroenke and chief executive Ivan Gazidis apparently decided that appointing former the Gunners midfielder would be a risk because he lacks managerial experience at the top level.
GETTYArsenal news Mikel Arteta disagreed where Mikel Arteta did not
"Arsenal is known and loved throughout the world for its style of play, its commitment to young players, the fantastic stadium, the way the club is run".
After Emery's consecutive triumphs with Sevilla, he left for Ligue 1 giants Paris Saint-Germain where he was charged with the responsibility to win the Champions League.
The 46-year-old Spaniard said: "We will create a new present and a new future for Arsenal". His familiarity with our club and our players, the Premier League, and the game in Europe were all very impressive.
Emery, who has no previous experience in England, has a reputation for having an nearly obsessive attention to detail, putting a large emphasis on video analysis and excelling at improving individual players - qualities that many have said were lacking at Arsenal during the latter part of Wenger's reign. "His hard-working and passionate approach and his sense of values on and off the pitch make him the ideal person to take us forward". He began his coaching career at Lorca Deportiva in 2005 while also coaching Almeria, Valencia and Spartak Moscow. We had a meeting on Monday.
PSG failed to reach the quarterfinals again in Emery's final season, beaten home and away by Real Madrid.