Mikel Arteta agrees deal to join Arsenal as new manager

Manchester City assistant Mikel Arteta has reportedly agreed on a three-and-a-half year deal to join Arsenal as their new head coach.

Arteta has been heavily linked with the managerial vacancy in the past few days and Sky Italy's Fabrizio Romano has now confirmed that an agreement has been reached between the parties involved.

The Spaniard is set to be handed with a £5m-a-year contract upon joining the Gunners while the Cityzens are deemed to have settled for a compensation fee of around £1m.

Guardiola had indicated yesterday that Arteta would travel with the Cityzens for the League Cup quarter-final at Oxford United and that is clearly the case with the former Arsenal man spotted in the warm-ups.

He is expected to report to the Gunners shortly after the League Cup contest and an announcement over his appointment could be made in the next 24 hours, provided there are no last-minute roadblocks.

Meanwhile, Everton are said to be close to recruiting Carlo Ancelotti as their new manager. Both Gunners and Toffees could have new managers in the dugout when they face each other this weekend.