William Saliba has chosen to join Arsenal after rejecting a late approach from Tottenham, according to reports in France.
The Gunners had been in the driving seat to sign the 18-year-old and had hoped to secure a €30 million (£27m) deal with Saint-Etienne.
But last week, Tottenham submitted an improved bid to Saint-Etienne and offered better contract terms to the defender.
However, Peuple-Vert, a French outlet based in Saint-Etienne, claim that Saliba has opted to join Arsenal after the Gunners revised their original offer.
The report claims that Arsenal will now pay an initial €33m (£29.8m) fee plus a further €7m (£6.3m) in add-ons. Arsenal are also understood to have agreed to a 20 per cent sell-on clause with Saint-Etienne.
Saliba will sign a five-year contract with Arsenal but will remain on loan at Saint-Etienne for the upcoming season.
Saliba made his first-team debut for Saint-Etienne in September 2018 and made 19 appearances for the French club last season.
The centre-back is regarded as one of the most highly rated young defenders in France and has also represented his national side from under-16 to under-20 level.