Fulham boss Roy Hodgson said last night he expects Chris Smalling to complete his move to Manchester United.
United agreed the fee with Fulham and personal terms with the player's agents before contacting Fulham again prior to making an official announcement on the club website.
United expect Smalling, who was in Fulham's starting line-up last night against Tottenham, to arrive in Manchester today for a medical and he will then be loaned back to Craven Cottage until the end of the season.
"The club has accepted an offer from United and as far as I know that's where he's going," Hodgson said. "I know nothing about an offer from Arsenal. Sir Alex doesn't make mistakes when he pays a lot of money for a young player because he realises in years to come he is going to seem very cheap.
"We knew we had a diamond in our midst but when you are Fulham and you produce a diamond you're always aware it can be taken away from you."
United see Smalling as a long-term replacement for Nemanja Vidic.
Read tribalfootball.com's interview with Chris Smalling on moving from the non-league to Fulham