Personal terms are yet to be finalised but no issues are expected and Arsenal are now confident of sealing an agreement once the finer details of the fee are determined.
Odegaard spent the second half of last season on loan at Arsenal, making 20 appearances and scoring twice in all competitions, but initially returned to Spain hoping to force hie way into Madrid’s first team.
However, Carlo Ancelotti replaced Zinedine Zidane as head coach and Odegaard was subsequently told he faced a fight for regular action this season.
The key breakthrough was Madrid’s decision earlier this month to drop their asking price from €60m to €45m.
Arsenal had enquired about Leicester City‘s James Maddison and considered reviving their interest in Lyon‘s Houssem Aouar but turned their attentions back to Odegaard once it appeared both the player and Madrid were willing to reach an agreement.
An exact fee for Odegaard has not been determined yet as talks continued but sources claim a total package worth around €40m is on the table with all parties expecting a positive outcome.