Declan Rice, an England midfielder currently playing for West Ham, will be joining Arsenal in a £105 million transfer.
The teams are still in discussion on the terms of the 24-year-old's contract.
It comes after the Gunners' third bid after having their first two bids rejected because they fell short of the £100 million West Ham demanded.
Earlier, Manchester City withdrew from the race after having its £90 million bid for Rice turned down on Tuesday.
Rice, the captain of the Hammers, has been a member of the team since enrolling in their program from Chelsea in 2014.
They won the Europa Conference League earlier this month under his leadership, giving them their first significant prize in 43 years.
His agreement with London Stadium was set to end in 2024.
A total of £100 million plus £5 million in add-ons make up Arsenal's offer. The original price is equivalent to the record British sum paid by Manchester City for midfielder Jack Grealish.
Jude Bellingham, a midfielder for England, joined Real Madrid earlier this month for an initial fee of £88.5 million. However, if add-ons are enabled, the total cost of the transaction could exceed £115 million.
Enzo Fernandez of Argentina was acquired by Chelsea from Benfica in January for a transfer fee of 121 million euros (£107 million), making him the most expensive acquisition in the Premier League.
Rice will depart West Ham this summer, according to chairman David Sullivan, who stated this after the team's Europa Conference League triumph against Fiorentina.
Since making his West Ham debut in the 2016–17 season after graduating from the academy, Rice has scored 15 goals in 245 games.
He participated in all five of England's games during the 2018 World Cup and has received 43 caps for his country.
Kai Havertz was acquired by Arsenal on Wednesday in a £65 million deal from Chelsea, who finished second in the Premier League last year.