Lacazette was in London for a medical as he ties up a move from Lyon for a fee which could reach £52m, eclipsing the £42.5m Arsenal paid for Mesut Ozil.

The 26-year-old, who scored 37 goals last season and has 11 caps for France, has agreed a five-year deal with the Gunners.

He will become their second signing of the summer, following left back Sead Kolasinac, who joined on a free transfer from Schalke last month.

Arsenal won the race to sign him after Lacazette’s move to Atletico Madrid collapsed when their transfer ban was upheld.

But while the spending will not stop there for the Gunners, they still face losing Sanchez, with City increasingly confident they will get him.

Arsenal have made it clear they do not want to sell the unsettled Chile star to a Premier League rival.

But with Bayern Munich president Uli Hoeness confirming that Sanchez is too expensive for the German giants, they may have little option.

Sanchez has a year left on his contract and is prepared to see it out and leave on a free next summer unless he gets his way.