SkySport24 says the Austrian youngster has signed a five-year pre-contract with Inter.
AC Milan and Lazio were also reported to be interested in the 20-year-old.
“Milan? No, they have not shown interest,” Arnautovic’s agent, Claudio Vigorelli, told calciomercatonews.com, “and neither have Lazio. The player already has a pre-contract with Inter and his choice is Inter.
“The negotiations are going on and next week we’ll meet Twente’s management to talk about the possibility of a loan deal with the right to purchase at the end of the season.”