Arsenal have agreed a club-record fee with Everton for Alex Iwobi.
It is believed that the Gunners will get around £36m-£40m for the Nigerian forward.
An opening bid of £30m bid was rejected yesterday, with Arsenal holding out for more money.
The Toffeess have now broken the North London side’s record for their most expensive sale.
Alex Oxlade-Chamberlain cost Liverpool around £40m, when he left the Emirates two years ago and it remains their biggest deal ever.
Everton submitted a deal sheet to the Premier League, which granted them a two-hour extension from the 5pm deadline, to wrap up the transfer.
“Alex has made a big contribution at Arsenal.
“He worked hard in the academy, where he was an example to many young players and has been an important part of our squad.
“We wish Alex every success in the future,” Gunners boss, Unai Emery, told the club’s official website.