Sky Sports News understands Fulham have accepted a bid from Manchester United for Chris Smalling.
The 20-year-old defender has become the subject of intense speculation during the January transfer window, with a number of clubs tracking his progress.
Arsenal manager Arsene Wenger, a man renowned for nurturing young talent, had openly expressed his admiration for the talented centre-half.
The Gunners are, however, yet to show their hand, with Wenger favouring a cagey approach in his winter transfer business.
That appears to have opened the door to reigning Premier League champions United, with Sir Alex Ferguson keen to snap up Smalling as a potential star of the future.
The England Under 21 international has made rapid progress since joining Fulham from Maidstone in 2008, and made his first Premier League start against Chelsea on 28th December 2009.
The Cottagers had been keen to fend off interest in the youngster amid mounting speculation, and have not commented on United's reported offer, but they appear to have relented in their efforts to keep Smalling in the capital.
When asked about the bid, a Fulham spokesperson said: "Fulham has no comment to make on speculation surrounding Chris Smalling"