The Gunners are believed to have agreed a deal to sign the Gremio and Brazil winger.
Arsenal's club doctors are said to be travelling to Brazil to conduct a medical with the 23-year-old as soon as today.
Everton enjoyed a breakthrough Copa America campaign with Brazil this summer, netting three goals in six appearances as the Seleção stormed to victory. New Arsenal director Edu has reportedly already met with Everton, his compatriot, to discuss personal terms.
Journalist Emanuele Guilaneli claims that the Gunners have already agreed to an initial €28m fee with Gremio, which could rise up to €40m through performance-related bonuses.
The structure of the deal is not yet finalised, but it is likely that Arsenal will look to include a number of add-ons in their payment, so as to free up as much money as possible this summer to pursue other targets including Kieran Tierney, Wilfried Zaha and William Saliba.
Everton managed 16 goals in 40 appearances for Gremio last season, whilst he has already racked up six goals since the start of the current campaign. This form earned him a debut call-up to the Brazilian national team and he started Brazil's Copa America final win against Peru.
We will be watching out for developments on this story as Arsenal aim to make a statement in the transfer window.