Everton are understood to have agreed on a fee in the region of £38m to secure the services of Alex Iwobi from Arsenal.

The Toffees made an opening bid of £30m for Iwobi on Wednesday but the proposal was swiftly rebuffed by the north London giants.

Still, there was the indication that the Gunners may be prepared to accept a higher sum and BBC Sport claims that the Toffees have found the breakthrough following an improved offer of £38m.

The agreement is said to have been reached just minutes before the 5pm transfer deadline and reports indicate that the Toffees have applied for the extension to finalise the transfer of the Nigerian attacker.

Iwobi is set to become the Toffees' seventh signing of the summer transfer window and their second most-expensive purchase after Gylfi Sigurdsson, who joined the club for £45m from Swansea City in 2017.

Everton start their league campaign with an away league game at Crystal Palace. Iwobi may not make his debut during the season opener, given he has just returned following his African Cup of Nations exploits.