Borussia Monchengladbach have confirmed they had received a transfer offer for midfielder Granit Xhaka, widely believed to have come from Arsenal.
The Switzerland international is the top target of Gunners boss Arsene Wenger, who is keen to seal the transfer before Euro 2016.
It had been previously reported that Arsenal had agreed on a deal worth up to €50million including performance-related bonuses, but, until now, there has been no official confirmation of negotiations.
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However, it appears as though a deal has taken a significant step closer to completion after the Bundesliga outfit confirmed on their official website that an offer has been received.
"Sporting director Max Eberl has confirmed that there has been a specific offer for the Swiss midfielder," the post read. "An agreement with the interested club is still pending."
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Xhaka, 23, has become one of Europe's most prominent midfielders after a sensational season with Borussia. Indeed, Arsenal are believed to be just one of a number of clubs interested in signing him.
But after failing to sign a single outfield player last summer, Wenger appears to have moved assertively to sign the highly-rated midfielder, who could become the club's second most expensive player ever.
A report in Tuesday's Mirror claimed that Arsenal had already agreed a fee with Borussia and were simply waiting to settle personal terms with the player.
They say the deal will be worth £33.8m, which is just shy of the £35m Arsenal paid for Alexis Sanchez in 2014. It will, however, see Xhaka become the third-most expensive signing in the club's history.
The news comes only hours after Xhaka himself confirmed that he is likely to leave the Stadion im Borussia-Park after a four-year stay.
He told German newspaper Bild: "There are now daily talks. And definitely a decision before the European Championship.
"I played my first competitive match for Borussia (Monchengladbach) in the cup in Darmstadt. This was followed by four wonderful years. Now perhaps the last game again in Darmstadt – the circle has virtually closed."
Is Granit Xhaka a good signing for Arsenal or are the north London club about to overpay? Give us your thoughts in the comment box below!