Gonzalo Higuain has reached an agreement in principle with Arsenal over personal terms on a four-year contract, as his move from Real Madrid edges closer.

The Argentina striker is the marquee addition that Arsene Wenger wants this summer and the manager is ready to break the Arsenal transfer record to sign him.

There is a confidence at the club that Higuain is poised to join, ideally before Arsenal depart on July 11th for their tour of Indonesia, Vietnam and Japan, and it appears that the final obstacle is the sign-off from the incoming Real manager.

The Spanish club, who parted company with Jose Mourinho at the end of last season, have lined up a deal for Paris Saint-Germain’s Carlo Ancelotti and he is keen to be installed at the Bernabeu as soon as possible.

He could then sanction Higuain’s release. The player has come to feel surplus at Madrid and the club have already circulated his name to potential buyers.

But PSG’s search for a new manager, which has taken several twists, has not yet been resolved and the situation has had an effect on Ancelotti’s move to Madrid.

The discussions between Arsenal and Higuain’s representatives have progressed and the player has indicated that he is happy with the contract on offer, which is worth around £130,000 (€152,000) a week.

The 25-year-old stands to become Arsenal’s first £20m-plus player.