It is understood the fee is agreed with Lille and Pepe will become Arsenal’s record signing.
Nicolas Pepe
Arsenal have agreed the deal to sign Nicolas Pepe and details of his contract have emerged.
According to Italian reporter Nicolo Schira Pepe will sign a deal until 2024 at the Emirates.
He tweeted: “Done deal! #Arsenal have closed for Nicolas #Pepe. #Gunners will pay him €80M to #Lille. Pepe will sign a contract until 2024 by €6M a year. #transfers #AFC”
It is understood the fee is agreed with Lille and Pepe will become Arsenal’s record signing.
He is set to return from his holiday today and make his decision on a move but Arsenal believe he will be there player this week. Unai Emery even answered questions on their pursuit of Pepe this weekend admitting he was a 'very good player'.
He said: "We are working, the club, and also thinking about how we can improve. There are different players on the table with the possibility that we can achieve their signature.
"Pepe is a very good player and also we are thinking only of players who can really, really improve this squad and also give us some different conditions to improve.
"The same, we are working for the last few weeks and before starting the season in the first match in Newcastle, our aim is to get the best team with the best players in our squad."
Emery turned to Pepe when it became apparent a deal for top target Wilfried Zaha was too complicated.
Crystal Palace wanted the full transfer fee paid up front and the winger now looks set to stay in south London.
But Lille have accepted a deal that will be broken down in instalements for Pepe. Pepe had wanted to join PSG this summer but they have failed to make a move with Neymar's future still uncertain despite interest from Barcelona and Real Madrid.
And he now looks set to join Emery at the Emirates.