Barcelona midfielder Denis Suarez will join Arsenal on loan for the rest of the season for a fee of €2.5million (£2.17m).

Negotiations between the two clubs broke down last week because Barca wanted a permanent transfer and Arsenal insisted on a loan move.

Both Betis and Sevilla were prepared to pay a fee between €15m and €20m, but after the player insisted he was only interested in joining the Gunners, talks resumed ahead of this week’s transfer deadline.

The 25-year-old is out of contract in 2020 and will sign a new deal on Tuesday before his loan move is announced later in the day.

Despite signing that new deal, Suarez will be allowed to leave in the summer and Arsenal will have an option to sign the player permanently, but it is understood that the Gunners will not be obliged to buy the midfielder if things do not work out in north London.

Suarez, who was at Manchester City earlier in his career, worked with Arsenal manager Unai Emery in a spell on loan at Sevilla in 2014-15.

He has scored eight goals in 71 appearances for Barca, but has never been first choice at Camp Nou.