Everton have agreed to sell England Under 21 striker Francis Jeffers to Arsenal in a stg£10million deal.
The Gunners have to pay stg£8million up front with a further stg£2million to follow depending on appearances.
The Merseysiders reluctantly agreed to listen to offers for 20-year-old Jeffers when he turned down the offer of a new contract.
Newcastle were linked with the player but Jeffers has opted to join the Gunners, who will be playing Champions League football next season.