This will be Chambers' second loan spell away from the Gunners since he joined in 2014, as the 23-year-old completed a season-long loan at Middlesborough when they got relegated from the top flight in 2017.
The England youth international has made 94 appearances in the Premier League since his emergence in 2013, scoring three goals.
Fulham boss Jokanovic has had a busy summer so far, confirming the high profile purchases of Jean Seri (£27m), Alfie Mawson (£15m) and former loanee Alexsandar Mitrovic (£18m).
The London club are looking to take their first campaign back in the top flight since 2014 very seriously, as the signing of Chambers will add a lot of Premier League experience to the backline.
Jokanovic had looked at Barcelona defender Yerry Mina for a possible loan move, but has settled for the versatile Chambers, as Everton and Manchester United have shown firm interest in the Colombian international.
Chambers is likely to be involved in Fulham's first appearance back in the Premier League in over four years, when the Cottagers take on Crystal Palace at Craven Cottage on Saturday August 11.