Liverpool set to complete Alex Oxlade-Chamberlain signing
Press Association Sport understands the clubs have agreed a deal that will see the England international move to Anfield.
Oxlade-Chamberlain, 24, had also been a target for Premier League champions Chelsea but it is believed Liverpool was always the player's preferred destination.
Personal terms will now be discussed with reports suggesting Oxlade-Chamberlain could undergo a medical on Wednesday evening at St George's Park - where he is currently training with England ahead of their World Cup qualification double-header.
Chelsea had seemingly moved into pole position to land the former Southampton youngster after agreeing their own deal with Arsenal.
But Oxlade-Chamberlain appears to have his heart set on a move to Liverpool.
The loss of the midfielder will be seen as a blow by Arsenal boss Arsene Wenger, who has been adamant in recent weeks that he wants to keep the player at the Emirates Stadium.
Arsenal's hand was weakened by the fact Oxlade-Chamberlain's contract had less than a year to run and they have decided to cash in for a reported £40million rather than allow him to walk away for free in 2018.
Liverpool are also trying to conclude a club-record deal for Monaco midfielder Thomas Lemar before the transfer window closes.
The Ligue 1 side are reluctant to sell but their purchase of Lazio winger Keita Balde on Tuesday raised hopes they may be preparing for his departure.
It would likely take a fee in excess of £70million for the highly-rated 21-year-old and reported late interest from Barcelona, who have been frustrated in their attempts to sign Liverpool playmaker Philippe Coutinho, may complicate things further.
Wantaway Southampton centre-back Virgil van Dijk is also a player Liverpool would be keen to sign should Saints decide to cut their losses on a defender who has yet to play for them this season after insisting he wants to leave.
But having had to publicly withdraw their interest earlier in the summer after allegations of an illegal approach, the Reds would need some encouragement from the south-coast club to make a world-record offer for a defender.