Stuttgart have agreed to buy Dinos Mavropanos regardless of their possible relegation, football.london understands.
The 24-year-old has impressed on loan at the Bundesliga side this season, where he's scored five goals for the German side that are struggling this season, sitting second from bottom and four points adrift of safety.
Mavropanos is set to leave Arsenal permanently this summer, although football.london has learned that the Gunners have a sell-on clause in the deal which is likely to be in the region of 10%.
Borussia Dortmund and West Ham are both monitoring Mavropanos' progress in Germany, with a number of European clubs interested in signing the Greek international next summer.
Stuttgart paid a €500,000 (£415,000) loan fee for Mavropanos and they have an obligation to buy him for €3million (£2.5million) next summer.
That option isn't valid if Stuttgart are relegated whilst they also have an option to buy if they don't reach their team objectives this season.
Essentially, Mavropanos will almost certainly be joining Stuttgart on a permanent deal next summer - for a fee not much more than Arsenal initially paid for him.
Stuttgart sporting director Sven Mislintat was the man who brought Mavropanos to Arsenal three years ago and was the major player behind the signing.
Mislintat departed Arsenal in controversial circumstances but maintains a good working relationship with the club.
He believes Mavropanos possesses all the qualities to become of the leading centre backs in Europe and has already compared him to former Bayern Munich defender Lucio.
"Dinos is one of the prototypes of what this team is: Always working, they want to win, always improve," said Mislintat.
Stuttgart boss Pellegrino Matarazzo has also praised Mavropanos for his consistent performances in the backline.
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"Dinos always shows in training that he can do magic”, Matarazzo said on German broadcaster SWR TV’s Sport im Dritten show.
“He combined heart, energy and determination. We need guys like him."
Meanwhile, Marseille president Pablo Longoria has confirmed that Matteo Guendouzi will join the French side from Arsenal at the end of the season on a three-year deal.
Guendouzi has made 38 appearances in all competitions so far and has impressed with his combative performances in midfield.