The path is clear for Kieran Gibbs to join Watford after Arsenal agreed to a deal, sources said. John Patrick Fletcher/Actionplus/Icon Sportswire

Arsenal have agreed a fee with Watford for the transfer of defender Kieran Gibbs, sources close to both clubs have told ESPN FC.

Watford have agreed a fee of £5 million with Arsenal for Gibbs, but agreeing personal terms with the defender could still be a stumbling block for the Hornets.

Arsenal are willing to let Gibbs move on as he is well down the pecking order in Arsene Wenger's plans.

Gibbs had not featured for Arsenal this season, and with the player in the final year of his contract Arsenal have decided to sell.

England international Gibbs is now set to move on in search of regular first-team football after finding himself out of favour at Arsenal.

Watford have been leading the chase for Gibbs all summer as Marco Silva looks to bring a new left-back before the close of the transfer window.