Real Madrid striker Higuain and his agent father Jorge, are believed to have agreed personal terms of ?130,000-a-week as Arsenal prepare to smash their transfer record and wage structure to land the Madrid hit-man.
The Spanish giants informed Higuain he is able to look for a new club last month and gave him the green light to negotiate a move away from Real Madrid this summer, with a host of clubs in Europe reportedly interested in the Argentine.
Higuain is keen to move to the Emirates however after two rounds of talks with Arsenal boss Arsene Wenger, who hopes to wrap up the formalities before the club's Far East tour in three weeks' time.
Juventus have also been keen on Higuain but they are now more likely to land Fiorentina's and Arsenal target Stevan Jovetic, while Arsenal must also thrash out a final agreement with Real Madrid and finalize the deal.
Wenger is now confident of landing Higuain and it will be seen as a huge statement of intent by Arsenal to signal their determination to challenge again for major trophies.