Arsenal are hopeful of salvaging a loan deal with Bayer Leverkusen for the services of Piero Hincapié, who a source said has already agreed terms.
The Premier League title hopefuls have already spent more than £250 million ($338m) in the summer transfer window to strengthen the squad and cannot afford to sign the Ecuador international in a direct transfer.
Over the last few hours, Arsenal have intensified negotiations with Leverkusen to allow them to postpone the payment through a loan with an obligation to sign Hincapié next summer.
One source close to the negotiation has confirmed to ESPN that Arsenal already have everything agreed with the player and, after the latest talks, there is optimism that Leverkusen will also give the green light to close the deal before the end of the transfer window.
ESPN reported earlier this week that the Gunners had made an approach to explore the possibility of signing Hincapié, while they were also negotiating a deal that would send Jakub Kiwior to FC Porto.
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Leverkusen had the intention of keeping Hincapié and the first response was to request the £52m ($70m) of his release clause.
However, Arsenal made it clear from the beginning that they would not reach that amount and that they were in favour of securing the signing through an initial loan due to their financial limitations.
While the sale of Kiwior to Porto is now just a matter of time, the negotiations between Arsenal and Leverkusen for Hincapié have intensified.
Sources said the north London club are confident that Hincapié's desire to leave the Bundesliga for the Premier League will motivate Leverkusen to soften their stance and accept his departure.
Information from ESPN's James Olley was used in this report.