Arsenal are in advanced stages of finalising a transfer move for 16-year-old striker Vincent Joseph, who is set to leave Liverpool.
The highly-rated young forward decided against signing a new contract with the Reds, freeing him to move to the Emirates Stadium once compensation is settled.
Joseph has already reached a personal agreement with Arsenal, but the two clubs are now negotiating the compensation fee between themselves.
Should the clubs fail to agree on a figure, the matter could ultimately be referred to a tribunal, according to the Athletic.
Liverpool will be deeply disappointed to lose such an exciting young talent, particularly to a direct and formidable Premier League rival like Arsenal.
The Gunners have been aggressive in targeting young talent this summer, with Joseph far from the only teenage prospect on their radar.
Arsenal are also set to sign Axel Donczew from Cardiff City, while Mylo Bernard is additionally expected to make the move to north London.
The club notably missed out on signing Jeremy Monga earlier this summer, with the teenager instead choosing to move from Leicester City to Manchester City.
Recruiting players of this profile has become increasingly important for top clubs as transfer fees across the Premier League continue to rise sharply.
Arsenal’s academy credentials speak for themselves, with Bukayo Saka and Myles Lewis-Skelly among the standout examples of homegrown talent thriving in the first team.
Younger prospects including Ethan Nwaneri, Max Dowman, and Marli Salmon have also caught the eye during pre-season, further underlining the club’s strong development pathway.
If Joseph follows a similar trajectory, he could eventually contribute at the highest level without Arsenal having to spend heavily in the senior transfer market.
There is also the longer-term possibility of generating significant profit from a future sale should a player developed through the system attract external interest.
Arsenal fans will hope the details surrounding Joseph’s move are resolved swiftly, allowing the teenager to begin his development under the club’s coaching staff as soon as possible.