Southampton winger Alex Oxlade-Chamberlain is undergoing a medical at Arsenal ahead of a move to the Emirates Stadium.
Chamberlain, 17, was the subject of a £10 million bid - made up of a £5 million down payment and a number of performance-related add-ons - which was rejected last week, but Arsenal have returned with a higher offer.
According to reports the Gunners have now agreed to pay £15 million for the England Under-21 international, with an up-front fee of £12million plus a possible further £3 million through add-ons.
Arsenal midfielder Emmanuel Frimpong appeared to confirm the move, saying on his Twitter account: ''new player young and british.''
Oxlade-Chamberlain, contracted at Southampton until 2013, is regarded as one of England's most promising young footballers. The teenager played a key role in helping Southampton secure promotion to the Championship last season, firing nine goals in 34 appearances.
Known for his pace and ability to beat defenders, he can operate on either side of the pitch. His style has invited comparisons with Theo Walcott, who also left Saints for Arsenal, though Oxlade-Chamberlain is a better defender who is comfortable in central midfield as well as out wide.
Manager Arsene Wenger is also rumoured to be close to signing Costa Rican striker Joel Campbell as a replacement for Nicklas Bendtner, who is expected to leave the club this summer.
Arsenal are also keen to bring in at least one experienced Premier League defender as Thomas Vermaelen limped off against Benfica at the weekend, with Birmingham's Scott Dann, Everton's Phil Jagielka and Bolton's Gary Cahill all possible targets.
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