William Saliba is set to move to Arsenal ahead of Tottenham Hotspur after rejecting a late offer from the Champions League runners-up, according to a report in France.
French media outlet Peuple-Vert, as quoted by Metro, is reporting that Saliba has decided to move to Arsenal after the north London side improved their initial bid.
The same article states that the Gunners will pay €33m (£29.8m) fee as well as an additional €7m (£6.3m) in add-ons.
According to the same story, Arsenal have also agreed a 20 per cent sell-on clause with the Ligue 1 side to ensure the French club will benefit if Saliba decides to leave The Emirates in the future.
The report adds that Saliba will put pen to paper on a five-year deal with Arsenal before the teenager is set back to Saint-Etienne on loan for the 2019-20 season.
Saliba has limited first-team experience under his belt after making a mere 19 appearances for Saint-Etienne in Ligue 1 last season.
The 18-year-old has represented France at youth level but Saliba is still waiting for his first senior cap.
Arsenal have only signed one player in the summer transfer window so far after the Gunners completed a £1.6m deal for Gabriel Martinelli from Brazilian club Ituano.