The Poland international’s future remains the subject of intense debate despite CEO Hans-Joachim Watzke having insisted Lewandowski will play for Dortmund next season.
BVB has ruled out selling the star striker to Bayern Munich although the player remains keen on a move to the European champion.
Arsenal's Premier League rival Manchester United has also been linked with the Pole but Podolski feels Lewandowski would be a huge success with the Gunners.
"He scored 24 times last season,” he told Polish newspaper Polska The Times. “He can make it anywhere and he would fit perfectly at Arsenal.
"At the end he has to decide, not the media or manager."
Lewandowski scored an impressive 24 goals in just 31 Bundesliga appearances last season for Dortmund and 36 goals in all competitions for Jurgen Klopp's men.