Arsenal have agreed the signing of Lucas Perez from Deportivo for £16.9million after revising the structure of their bid.
Arsenal were told their initial offer was 'unacceptable' as they attempted to pay the 27-year-old striker's buyout clause in two instalments but his club Deportivo demanded the fee in one payment.
The impasse gave Everton brief hope in their pursuit but Lucas's preference was to join Arsenal owing to the prospect of playing Champions League football.
Valencia had also made an enquiry for Lucas as they look to replace Barcelona-bound Paco Alcacer but have been told the player has decided to join Arsenal.