Arsenal have agreed to a deal worth up to £67.5 million ($91m) for Crystal Palace midfielder Eberechi Eze after hijacking Tottenham's pursuit of the England international, sources have told ESPN.
On a dramatic day of activity, Spurs on Wednesday morning were confident of finalising a deal after reaching an agreement with Palace -- and personal terms with Eze.
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However, Arsenal decided to enter the running later in the day amid fears that Kai Havertz could be set for a lengthy spell on the sidelines after picking up a knee injury.
Arsenal have agreed terms with Eze, and sources have told ESPN that the move is worth £60m with £7.5m in add-ons.
Eze was originally set to play for Palace in Thursday's Conference League playoff first leg against Fredrikstad, in likely his last game for the club, but was left out of the squad entirely.
"Honestly, I expected that he would start today for us, but he called me this morning and said that he doesn't feel well to play in the evening," Palace manager Oliver Glasner told British broadcaster Channel 5 ahead of the game. "And of course I have to accept it. And everything else, you have to ask the chairman."
After the game, Glasner said he doesn't think Eze will play for Palace again.
"Looks like wishing him all the best for his new club," Glasner said following a 1-0 win over the Norwegian team.
Sources said that Arsenal had, before Wednesday, not followed up their initial interest for two reasons: It was tied in part to Ethan Nwaneri potentially leaving the club -- the teenager has recently signed a new five-year deal -- and the north London club were prioritising exits before pondering a deal for Eze after having committed almost £200m on signings in this window.
However, Havertz missed an open training session at Emirates Stadium on Wednesday with sources later confirming the club is waiting on the results of further tests before determining the full extent of the problem.
Early indications suggest Havertz is facing a lengthy spell on the sidelines as Arsenal have opted to re-enter the market and accelerate negotiations with Eze.
The opportunity for Arsenal to act was also in part created by Palace's reluctance to let Eze leave before Thursday's game against Fredrikstad.
Eze, 27, was willing to join Spurs, but the midfielder, who has two years remaining on his contract, is a boyhood Arsenal fan and was previously thought to be open to joining the club when they originally made their interest known.
Spurs are set to move on to other targets, but it ranks as another disappointment in the market for Thomas Frank's side after they missed out on Morgan Gibbs-White, who at one stage was on the brink of joining the club before opting to sign a new contract to stay at Nottingham Forest.
Information from The Associated Press was used in this report.