Well connected Spanish football expert Guillem Balague claimed that the Real Madrid forward had agreed to join Arsenal in the summer and only a fee between the two clubs needed to be agreed.
The news follows reported interest from Arsene Wenger in the January transfer window, with reports claiming that the Arsenal boss was keen to take Morata on loan for the rest of the season to cover for the injured Theo Walcott.
Carlo Ancelotti rejected the possibility of Morata leaving mid-season but the 21-year-old remains a bit-part player at the Bernabeu.
He is now more likely to depart in the summer and Inter Milan are ready to butt in on Arsenal's advances with a summer transfer move.
The Serie A outfit have been promised significant funds from new owner Erick Thor and he is ready to commission a bid for striker reinforcements in the summer transfer window.
Manchester City's Edin Dzeko remains the main target for Inter but their interest in Morata remains strong as they know the Citizens will be under little pressure to sell the Bosnian international.
Morata's claimed agreement with the Gunners in no way confirms his transfer to the Emirates and, if Arsenal fail to meet Real Madrid's asking price, they could miss out on what appears to be a major summer transfer target.
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