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Saint-Etienne has confirmed that William Saliba should sign for Arsenal, but that he will remain on loan with them this season.
The Gunners were in pole position to sign the 18-year-old after submitting an offer of 30 million euros to Saint-Etienne earlier this summer.
But Tottenham tried to divert the movement last week by launching a higher offer to the French club and a better contract proposal to the defender.
Arsenal reacted by increasing its offer to € 33 million (£ 29.8 million), to which an additional € 7 million (£ 6.3 million) was added.
And the president of Saint-Etienne, Bernard Caiazzo, confirmed that the central defender would go to the Gunners.
"Everything is on track with Arsenal," Caiazzo told Le Progres newspaper.
"William will play with us next season."
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Arsenal also hopes to sign a loan deal with Real Madrid midfielder Dani Ceballos next week.
The Spanish, aged 22, will take out a loan for the season, but the Gunners will not be able to sign it permanently from Madrid.
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