The Southampton winger has been tracked by the Gunners for some time and now looks set to follow in the footsteps of former Saint Theo Walcott in moving to North London.
A fee of £12 million has been protracted with Arsenal paying £7 million up front and the remaining £5 million being paid through performance-related add-ons.
Southampton’s insistence of adding a 40 per cent sell-on fee almost caused the deal to collapse only for both parties to reach an agreement after further talks.
His move to the Emirates will certainly prove to be a major coup for Wenger with the 17-year-old also being monitored by Liverpool and Manchester United.
However the England Under-21 star has always maintained that his preference was a move to the Emirates. Despite the prospect of a season of limited Premier League action he is keen to make the move to London.
It will also be a substantial boost to Wenger and the Gunners fan who have endured a difficult summer in the transfer market so far.
The deal for Oxlade-Chamberlain will certainly appease those in the stands who have craved some serious transfer activity with Gervinho the only major incoming.
Arsenal expect the deal to be completed this week with personal terms expected to be a mere formality.