It is understood Arsenal will pay the initial £100m over two years. One source has told Sky Sports News Rice will have a medical this week ahead of signing a long-term contract.
The England international is closing in on a big-money switch to the Emirates Stadium.
Declan Rice is to undergo a medical at Arsenal following agreement on a fee with West Ham, the PA news agency understands.
The signing of the Hammers captain for £100million plus £5million in add-ons will not only break Arsenal’s own transfer record but also see Rice become the most expensive Englishman in Premier League history.
Arsenal launched their third and final bid last week with an offer which saw champions Manchester City pull out of the race to sign the 24-year-old.
West Ham were not happy with the payment structure of the Arsenal deal but, after further negotiations, it is understood an agreement is in place and Rice is free to discuss personal terms and have his medical ahead of a move to the Emirates Stadium.
Rice, who lifted the Europa Conference League title in what now looks set to be his final West Ham appearance, has been Arsenal’s top target this summer.
He would become the second summer signing for Mikel Arteta’s side, following the addition of Germany forward Kai Havertz from Chelsea, as the Gunners look to go one better than their second-placed finish last season.
Ajax defender Jurrien Timber also remains a priority for the Gunners, who head to Germany for a pre-season training camp later this month.