Arsenal beat competition from Everton and AC Milan to sign Schalke's Sead Kolasinac

Kolasinac was the subject of a failed bid from Chelsea in January.

Arsenal have agreed a deal in signing Schalke's Sead Kolasinac and the left-back will join the Gunners on a free transfer in the summer.

The 23-year-old's contract with the Bundesliga outfit will run down after the end of this season. He has decided against signing a new deal, which will allow him to leave his current employers as a free agent.

According to The Guardian, Arsenal have managed to beat the competition from Everton for the Bosnia and Herzegovina international's signature. The defender was in advanced talks with Merseyside club officials over the possibility of making a switch to Goodison Park after his contract expires.

However, Everton's efforts went in vain when the north London side opened negotiations for Kolasinac's signature. The player has snubbed advances from Ronald Koeman's side in favour of joining the Gunners. It is believed that the Toffees were not the only club interested in signing him.

The Daily Mail reports Arsenal's league rivals Chelsea, Manchester City and Liverpool were also looking at the option of signing him. Antonio Conte's side placed a bid of £5.3m ($6.6m) in January, which was rejected by Schalke.

Italian clubs Juventus and AC Milan also joined the race in signing Kolasinac, with the San Siro outfit coming up with an improved offer for the full-back. The Schalke star has already made his decision to join Arsenal, who initiated talks with his agent in January.

Kolasinac, who was born in Germany, spent his entire career in the Bundesliga. He played for the German Under-18s, Under-19s and Under-20s before representing Bosnia and Herzegovina, his parents' homeland.

The arrival of Kolasinac at Arsenal will see him fight with Nacho Monreal for the left-back slot. The Spain international has been struggling this season and he needs to step up his efforts in order to retain his place in the starting lineup next season.

Despite agreeing to join Arsenal, Kolasinac will not be able to officially join the Emirates club until July. He will become the Gunners' first signing of the summer transfer window.