Fulham have agreed a £27m deal with Arsenal for Emile Smith Rowe that also includes up to £7m in add-ons, according to reports.
Negotiations between the two clubs have been ongoing in recent weeks, with Arsenal first rejecting an initial bid as Crystal Palace also held interest in the playmaker.
The agreement breaks a new club record transfer fee for Fulham after they previously forked out £25m on midfielder Jean Michael Seri six years ago.
Smith Rowe is currently on Arsenal's pre-season tour of the United States but hasn't featured in any games as Fulham attempted to reach an agreement with last season's Premier League runners-up.
An improved bid from Fulham has now been accepted with the former England international set to join Marco Silva's side, as reported by theBBC.
Fulham have reportedly agreed a £27m deal with Arsenal for Emile Smith Rowe that also includes up to £7m in add-ons
Fulham previously had a £30m bid rejected for Smith Rowe as Arsenal sought to recoup a higher fee on their investment in a player that many fans value as one of the academy's best talents.
Smith Rowe is yet to sign off on personal terms and must undergo a medical that could be completed in either America or back in London.
His departure is also one of Arsenal's most expensive but fails to top the £35m that Liverpool previously paid for Alex Oxlade-Chamberlain in 2017.
The 24-year-old currently has two years remaining on his existing deal at the Emirates and struggled with injuries last season while also being pushed out of a starting role due to the impressive performances of Leandro Trossard, Bukayo Saka and Gabriel Martinelli.
However, the qualities displayed across 115 senior appearances for the Gunners have convinced Fulham to cash-in on his potential that previously saw him become a breakthrough star in 2018.
Smith Rowe was capped three times by England in 2021 and 2022, scoring one goal, but started just three Premier League matches last season as Arsenal finished Premier League runners-up for the second consecutive campaign behind Man City.