Fulham have agreed a £27m deal with Arsenal for Emile Smith Rowe that also includes up to £7m in add-ons, according to reports.
Negotiations between the two clubs have been ongoing in recent weeks, with Arsenal first rejecting an initial bid as Crystal Palace also held interest in the playmaker.
The agreement breaks a new club record transfer fee for Fulham after they previously forked out £25m on midfielder Jean Michael Seri six years ago.
Smith Rowe is currently on Arsenal's pre-season tour of the United States but hasn't featured in any games as Fulham attempted to reach an agreement with last season's Premier League runners-up.