Personal terms are key to Arsenal jumping ahead of Napoli in the race for Lille striker Nicolas Pepe.

The Daily Mail says Arsenal are confident of concluding a £72million deal for Pepe after a breakthrough in negotiations on Friday evening.

The French club had also reached agreement with Napoli over the fee but Pepe's agents have rejected their contract offer following talks on Thursday.

Arsenal now hope to finalise a deal by Monday.

The fee will be structured in instalments to fall in line with Arsenal's limited budget which has threatened a number of their bids this summer, notably for Crystal palace forward Wilfried Zaha.

Arsenal are also understood to be offering better terms for the 24-year-old Pepe who is poised to agree a five-year contract.