Arsenal have agreed a deal worth £105m to sign West Ham's England midfielder Declan Rice.
Talks are continuing between the clubs over how the deal will be structured for the 24-year-old.
It follows a third bid from the Gunners, having previously had two bids rejected after falling short of the £100m West Ham want.
Earlier, Manchester City, who had a £90m offer for Rice rejected on Tuesday, withdrew from the running.
Hammers captain Rice has been at the club since joining their academy from Chelsea in 2014.
Earlier this month he led them to Europa Conference League victory, their first major trophy in 43 years.
His contract at London Stadium was due to expire in 2024.
Arsenal's bid is comprised of an initial £100m plus £5m in add-ons. The initial fee equals the British record Manchester City paid for midfielder Jack Grealish.
Earlier this month, England midfielder Jude Bellingham signed for Real Madrid for an initial £88.5m, although that deal could reach £115m if add-ons are activated.
The Premier League's most expensive signing is the 121m euro (£107m) transfer fee that Chelsea paid Benfica for Argentina midfielder Enzo Fernandez in January.
Following the club's Europa Conference League victory over Fiorentina, chairman David Sullivan said he was "99%" sure Rice would leave West Ham this summer.
Rice has scored 15 goals in 245 games for West Ham, having made his debut in the 2016-17 season after coming through the academy.
He has been capped 43 times by England, playing in all five of their matches at last winter's World Cup.
Arsenal, who finished second in the Premier League last season, signed midfielder Kai Havertz from Chelsea in a £65m deal on Wednesday.
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