The Real Sociedad and Spain star is heading to England to become another major summer signing for the Gunners.
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Manager Mikel Arteta had been keen to bring in a midfielder, after signing defender Riccardo Calafiori.
Per Radio Marca Donostia, the Gunners will pay a fee of £29.8 million to sign Merino.
The deal is more than Arsenal would have preferred to pay for a player entering the last year of his contract.
However, Arteta believes that Merino is the ideal player to balance out his midfield options.
