Arsenal have struck a deal with Zenit St Petersburg for Andrei Arshavin, according to the Russian club, but a transfer is still some way from being concluded.
The Gunners have been locked in talks with Zenit for some time over the services of the 27-year-old Russia international, who shone at Euro 2008.
Zenit have not revealed the figure Arsenal have bid for the club's long-serving star, although they claim the fee is the 'real market value of the player'.
Arshavin, who interested Spanish giants Barcelona last summer, is now discussing personal terms with Arsene Wenger's side, but Zenit say his lofty demands are currently outside Arsenal's budget.
"The fundamental understanding over the transfer of the player has been achieved between the clubs," read a statement on Zenit's official website.
"At the moment the basic obstacle in realising the transaction is Andrei Arshavin's personal requirements."