Granit Xhaka has agreed terms with Bundesliga side Hertha Berlin, according to the Arsenal midfielder's agent.
Sky Germany reported last week that Hertha head coach Jurgen Klinsmann was eager to sign Xhaka in January, and Sky Sports News understands talks between the two clubs are continuing.
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It is understood Arsenal are looking to recoup as much of the £35m they paid Borussia Monchengladbach in 2016, but Xhaka's agent José Noguera is hopeful a move can be concluded.
Noguera said: "Look, I say it frankly and honestly: we agree with Hertha BSC and would like to go to Berlin. We told Arsenal's club boss Raul Sanllehi and sports director Edu - as well as the new trainer Mikel Arteta. "
He added: "Arsenal was informed about all the steps, the player and Hertha are clear. It is only about the transfer fee of the clubs."
Xhaka started new head coach Arteta's first game in charge, a 1-1 draw at Bournemouth on Boxing Day.
Arteta, who was previously assistant manager at Manchester City, even recommended his former club sign Xhaka before he moved to Arsenal.
However, the Swiss international looks set for a move away from the Emirates after a controversial few months which included being stripped as club captain for gesturing towards and swearing at fans while being booed off against Crystal Palace.
Hertha currently sit 12th in the Bundesliga, just four points off the relegation play-off place.
Arteta said the attitude of his Arsenal players was "spot on" after they fought back to salvage a draw at Bournemouth on his managerial debut.
He said: "I'm very pleased with some of the things I've seen in terms of attitude, character, the passion we showed, and the fight and the spirit the team showed.
"[It was] spot on, probably better than I expected over 90 minutes.
"A lot of things that happened in the game we prepared, I think they understood them and they tried to take them on board and we liked the final product at the end.
"I was worried what would have happened if we conceded a goal, and we did, and I was very pleased with the character they showed, how they came in at half-time, their faces, their reactions, how much they wanted it.
"Because normally when they are in this process and you concede a goal, belief goes down and a lot of things that have happened in the past can come back.
"And it didn't happen, it happened completely the opposite side and that's a real positive to take on board."
How to follow the January transfer window
Sky Sports will bring you the very latest news from the January transfer market with the return of three shows.
Start your day with Good Morning Transfers at 9am as our team of reporters bring you the latest news and insight. Transfer Talk then follows at midday delivering analysis of the biggest stories. Then join us at 7pm for the definitive round-up of the day's news with The Transfer Show.
Meanwhile, the Transfer Talk podcast will also be back at the turn of the year with more expert analysis from here and across the continent.
And as well as tuning into Sky Sports News, don't miss a thing with our dedicated Transfer Centre blog.