Arsenal have agreed to sign West Ham United captain Declan Rice after reaching an agreement on the framework of the £105 million deal on Tuesday night.

The Gunners are expected to pay the initial £100 million over two years. Sky Sports reports that Rice will get a medical this week before signing a long-term contract.

The midfielder also received interest from the Premier League champion Manchester City. The Cityzens recently let go of their captain, Ikay Gundogan. The German midfielder has joined La Liga champions Barcelona on a free transfer.

The transfer of Rice will break Arsenal’s club transfer record (Nicolas Pepe from Lille for £72 million in 2019) and will be the most expensive transfer between two British clubs.

Rice’s ten-year stint at West Ham will come to an end, having progressed from youth team player to club captain.

Since making his first-team debut in 2017, Rice has made 245 appearances for the Hammers, and his final game for the club saw him lift West Ham’s first trophy in 47 years by winning the Europa Conference League final.

Kieran Maguire, a football financial expert, believes Arsenal’s apparent increased readiness to spend is a ‘reward’ for Mikel Arteta.

“Arsenal are actually in a very strong position when it comes to spending,” he told Sky Sports News.

“The reason for that is they have managed to get their wages under control.

“Arsenal’s wages are lower than they were in 2018. They are £150m to a £170m less than Liverpool, Manchester United and Manchester City. That has given them the flexibility to go into the market and buy new players without having to worry too much.

“Plus, they have got the additional benefits of Champions League matches coming in, premium prices and the minimum I would say prize money of £50m from being participants.

“So, you factor that all together and they’ve probably still got a bit of leeway in terms of what they can spend over this present window.”