Leeds chairman John McKenzie believes Kewell will open talks with the FA Cup winners this week after refusing to sign a new deal to remain at Elland Road beyond next summer, when his present contract will expire.
"The main thing now is what Harry wants to do," McKenzie told the Yorkshire Evening Post newspaper.
"If he wants Champions League football then he's aware of this official interest from Arsenal and he'll no doubt pursue that.
"I would guess he'll be talking to Arsenal and talking to Arsene Wenger at some stage this week.
"He's heard what we've got to say, so I suppose we've got to accept that he'll want to hear what they've got to say as well.
"We've done all we can for Harry and we've made what we all consider to be a very good offer.
"If Harry decides that offer's not good enough and he doesn't want to play for Leeds then that's his choice.
"But we had a good meeting on Friday and nothing has been decided yet. I think Harry wants to assess his various options and there's nothing more we can do until he's done that."