The Uruguayan international made 29 appearances in the Premier League last season, scoring once and creating one assist, but has been linked with a move away from the Emirates this summer.
Ceballos, meanwhile, is said to be in north London undergoing a medical ahead of moving back to Arsenal following his successful loan spell at the club last season.
According to Italian outlet Labaro Viola as long as everything goes smoothly with Ceballos Arsenal will allow Torreira to move on a season-long loan to Florence for a fee of £8m, with a £16m obligation for them to buy him next summer.
Torreira first joined the Gunners from Sampdoria in 2018 and started strongly, becoming a key member of the side under previous manager Unai Emery.
However, he has not quite managed to hit his previous heights recently, and current boss Mikel Arteta does not appear to have him in his long-term plans for the club.
Meanwhile, it is not yet clear whether Arsenal are still keen on bringing in either Thomas Partey or Houssem Aouar this summer once Ceballos is confirmed.
Atletico Madrid’s Partey is a player they have been following for some time, with the Ghanaian international impressing in La Liga over the last few years.
However, with Arsenal having already completed the signings of Willian and Gabriel Magalhaes, not to mention the imminent arrival of Ceballos, it is debatable whether they would be able to afford Partey.