The unnamed club, believed to be Chinese champions Shanghai SIPG, is understood to have bid £35m for Arnautovic with wages understood to be £200,000 a week over a four-year contract.
Samir Nasri admits that he was in tears thinking his career was over when he was handed an 18-month ban, but is glad he has been given another chance to do "the best job in the world" as West Ham gear up to face his former side Arsenal.
Arnautovic has shone for West Ham since joining from Stoke in the summer of 2017, helping the Hammers stay in the Premier League last season. "They paid £20m for him, which is nothing in the current market", read the statement.
Pellegrini added that the two-time Premier League winner's previous experience sets him in good stead for his return to football with West Ham.
A tough trip to the Emirates Stadium lies in wait for West Ham this weekend, a ground at which Nasri spent three years earlier in his career, and the two-time Premier League victor is determined to show his quality in what will be a "crazy" atmosphere. He wants to go to a new market and challenge for titles.
However, Arnautovic appears determined to engineer an exit, on the evidence of a statement from the player's brother and agent Danijel, given to talkSPORT.
Arnautovic praying he gets to move to China.
Marko is professional and is preparing himself for the Arsenal game.
"You choose a club and a project because of the ambition, and I think that West Ham has everything to be one of the biggest clubs", he said. That is Marko. He will never change.
West Ham were quick to respond to Danijel's statement, denying their player wants to depart just moments after his brother had said he had. He hopes the fans can respect his wishes.
"Marko and all the other players involved in rumours have their heads here", he said.
Will be hard to replace but i trust Pellegrini to do it. [tomster36]This whole thing about Arnautovic is annoying!
According to the Daily Mail, the Hammers consider Bournemouth's centre-forward a top target if they need to sign a new attacker.
Arnautovic has also been linked with a move to Chelsea.
"As for Alvaro Morata, I honestly don't know what he does".
"West Ham's star man Arnautovic might, though". He can make things happen and do something special.