Arsenal's winger plan edges closer; salary already discussed

Arsenal are closing in on an agreement for Nicolas Pepe's exit as Mikel Arteta continues his squad "clean up." The Ivory Coast international is not in the Gunners manager's plans for the ongoing 2022-23 campaign, and will be allowed to leave the Emirates Stadium this summer.

Pepe joined Arsenal from Lille for a club record £72 million in 2019, but failed to capture the form he showed with the Ligue 1 club. The Ivorian winger struggled to nail down a regular place in the starting XI under both - Arteta's predecessor Unai Emery - and the Spaniard.

The 27-year-old has fallen out of favour this season, and failed to make the squad for Arsenal's 3-0 win over Bournemouth last Saturday. He is keen to depart North London in search of regular football, with Ligue 1 outfit OGC Nice being touted as his next destination.

The French club have been on a recruitment drive this summer, having already signed seven players including former Premier League stars Kasper Schmeichel and Aaron Ramsey. The Ligue 1 outfit are keen to sign Pepe and have been in discussions with Arsenal for a number of weeks.

Italian transfer expert Fabrizio Romano confirmed positive discussions between the two clubs, suggesting the move is close to completion. The transfer is expected to be a straight loan until the summer of 2023 with no buy option included at the moment.

Arteta signed five players during the early stages of the transfer window before focusing on departures. The Gunners boss is keen to make further additions, but is aware that he needs to first trim his first-team squad before further players can be brought in.

Arsenal are reportedly targeting a move for Wolverhampton Wanderers winger Pedro Neto as a replacement for Pepe. The Portugal international is highly-rated by Arteta and the Spanish coach wants to bring the 22-year-old to North London this summer.

As per The Athletic's David Ornstein, Neto is a priority for the Gunners, who have been in talks with Jorge Mendes, the winger's agent, for over a month. Wolves do not want to part with the Portuguese forward, but will enter negotiations if Arsenal make a substantial offer.

Neto is valued at £50 million by the Premier League club, while Arsenal are said to be only prepared to offer around £35 million for the former Lazio winger. However, before the north Londoners can approach their Premier League rivals, Arteta wants to oversee Pepe's exit.