The 24-year-old midfielder played for West Ham since joining their academy at age 14. He went on to appear in more than 200 matches for the club.

He captained the club to victory in the UEFA Conference League last month.

It is believed the Gunners offered £100m and a further £5m in potential add-ons - making him the second most expensive ever British transfer.

Sky Sports News report Jude Bellingham's recent transfer from Borussia Dortmund to Real Madrid is the most expensive transfer of a British player ever. Although the initial fee in that deal is £88.5m, analysts say the figure could eventually surpass £115m with add-ons.

The value of the Rice deal just tops Jack Grealish's transfer from Aston Villa to Manchester City in a £100m deal in 2021 - now the third most expensive British transfer.

Chelsea's signing of Enzo Fernandez from Benfica for £107m earlier in 2023 is still the biggest-ever fee paid by an English club.

The fee for Rice beats Arsenal's previous club transfer record of £72m for Nicolas Pepe from Lille in 2019 and will be the biggest transfer ever agreed between two British clubs.

It's understood Arsenal will pay the initial £100m for Rice over two years.

The midfielder is expected to have a medical later this week.

Arsenal are expected to complete several more transfers this week, having already sealed the £65m signing of Kai Havertz from Chelsea.

Real Madrid star Aurelien Tchouameni, Ajax defender Jurrien Timber and Manchester City defender Aymeric Laporte have also been linked to the north London club.