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The Gunners were clearly led to the Ivorian international after the Napoli Serie A team withdrew from the race after failing to accept his personal terms.
And they quickly intervened to conclude an agreement with Lille and the fees will be paid in several installments in order to adapt to their strict budgetary requirements.
Pepe will sign a five-year contract at Arsenal after being offered a salary of £ 105,000 a week. It seemed then that he would go to Italy.
The £ 72m fee will be the largest paid by North London, beating the £ 60m Borussia Dortmund awarded to Pierre-Emerick Aubameyang in January 2018.
Pepe became one of Europe's hottest spots this summer after scoring 22 goals in Ligue 1 last season and Express Sport In April he had revealed that he had been targeted by Manchester United and Liverpool.
Aged 24, he will become his third arrival at the Emirates Stadium a few days after Dani Ceballos's loan to Real Madrid and the arrival of the William Saliba back center of St. Etienne.
Unai Emery is looking to restore Arsenal to the Champions League positions next season, despite the frugality in the transfer market.
And they made a good start in their preparations for the new campaign, with three wins and one draw in four games.
Arsenal so far beat Colorado Rapids, Bayern Munich and Fiorentina, while Real Madrid kept them in stalemate 2-2.
Ceballos, who signs a new loan, said he hoped to start his career at Arsenal after watching it play this summer.
"I have watched pre-season matches against Fiorentina and Bayern and we have a lot of young players and players who already have a lot of experience," Ceballos said.
"There is a good level, so I'm looking forward to meeting my teammates and getting in there as quickly as possible."
Ceballos revealed that part of Arsenal's current crop had convinced him to head for the Premier League.
"Well, as you know, there are Spanish players like Nacho Monreal and Hector Bellerin," Ceballos said.
"I get along very well with Hector, away from football, on a personal level.
"I told him I thought I would become a member and he told me not to think twice, because it's a big city and a big club and I would have a good time moment.
"I'm looking forward to seeing him and thanking him for his help in bringing me here."
Pepe could be with Arsenal on Wednesday when he faces his former club Angers in a friendly match at Stade Raymond Kopa.
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