Gonzalo Higuaín has reached an agreement in principle with Arsenal over personal terms on a four-year contract, as his move from Real Madrid edges closer. The Argentina striker is the marquee addition that Arsène Wenger wants this summer and the manager is ready to break the Arsenal transfer record to sign him.

There is a confidence at the club that Higuaín is poised to join, ideally before Arsenal depart on 11 July for their commercial tour of Indonesia, Vietnam and Japan, and it appears that the final obstacle is the sign-off from the incoming Real manager.

The Spanish club, who parted company with José Mourinho at the end of last season, have lined up a deal for Paris Saint-Germain's Carlo Ancelotti and he is keen to be installed at the Bernabéu as soon as possible. He could then be expected to sanction Higuaín's release. The player has come to feel surplus at Madrid and the club have already circulated his name to potential buyers.

But PSG's search for a new manager, which has taken several twists, has not yet been resolved and the situation has had an effect on Ancelotti's proposed move to Madrid.

The discussions between Arsenal and Higuaín's representatives have progressed in recent weeks and the player has indicated that he is happy with the contract on offer, which is worth around £130,000 a week. The 25-year-old stands to become Arsenal's first £20m-plus player. The club's current record signing is Andrey Arshavin at £15m.