Arsenal are ready to pay out Nicolas Pepe's contract.

The Ivory Coast attacker has seen a move to the Saudi Pro League fall through this past week.

Pepe also isn't in the plans of Gunners manager Mikel Arteta.

As such, the Mirror says Arsenal chief Edu is set to negotiate a pay-off with Pepe over his £140,000-a-week deal.

Pepe has one more year remaining on his current contract.