Barca agree Cesc fee

The Gunners swooped to sign the 16-year-old, who became the club's youngest-ever first team player last week when he made his debut against Rotherham United, on a six-year contract during the summer.

Barca were unhappy that the North Londoners snared the starlet who was not previously tied to a professional contract at Camp Nou because he was too young, and claimed a compensation fee.

After lengthy negotiations between the two clubs, it has been agreed that Arsenal will pay a sum of £700,000 and will waive the outstanding £1.75 million that the Catalans still owe from the double transfer of Marc Overmars and Emmanuel Petit in July 2000.

Additionally, the teams will play in a non-competitive match at the end of the current season, for which Arsenal will receive approximately £200,000 - plus any UK television rights - to take the total fee back to £2.25 million.

Barca have also insisted on negotiating an option for first refusal on Cesc should the youngster leave Highbury in the future.