Tierney is wanted by Unai Emery as he plans a revamp of his defence.
The 22-year-old is one of Scottish football’s top talents and would bring Champions League experience to north London.
Celtic want a big fee for Tierney after his impressive form north of the border.
But with Arsenal having just £45m to spend on new players this summer, they’ve had to be creative with the structure of the deal.
Football Operations and Communications consultant Ian McGarry issued an update on the Tierney transfer on Reach plc’s Transfer Window Podcast this week.
“I have been told Arsenal have made a renewed offer of £20m for Tierney,” he said.
“The structure of the payment is crucial, because Arsenal’s transfer budget is limited.
“What I have been told is that Arsenal are going to pay £10m up front, for Tierney, and £10m a year from now which makes up Celtic’s initial valuation of £20m as a downpayment, plus £5m in add-ons which would be paid in years three, four and five of the contract which Arsenal have projected.
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“What I have been told is that Arsenal are going to pay £10m up front, for Tierney, and £10m a year from now”
“No news yet on whether Celtic have agreed to those aspects of the payment structure.”
Former Gunners and Celtic star Charlie Nicholas thinks Tierney is well worth the money.
“My pitch would be £20m is a cracking deal for Celtic and it’s also a very good deal for Arsenal. That’s where I see the value,” the Scottish Daily Star columnist told the Sky Sports Transfer Talk podcast.
“People can look and judge in different positions and requirements, and of course I’ve been probably more vocal than anybody else about the need for a whole new back four for Arsenal, but in value terms I find it difficult to break down.”
Arsenal summer transfer deals
Gabriel Martinelli – Ituano