According to Italian newspaper Corriere dello Sport, Carlo Ancelotti has reached an agreement with Arsenal to replace Arsene Wenger at the end of the season.
Wenger still has a year and a half remaining in his contract, but could be forced to leave the club if they endure another trophy-less season and miss out on a top four finish.
The newspaper exclusively reports that Arsenal are willing to hand out a four year contract to Ancelotti with a €40 million salary.
The Italian has worked in England for two seasons before with Arsenal’s city rival Chelsea, with whom he won a Premier League title and one FA Cup.
He last managed the German giants Bayern Munich, but was sacked at the end of September due to poor results and a fall out with key players.
It is also understood that the Italian Football Federation is still trying to convince Ancelotti to take over the managerial role, which remains vacant since the sacking of Giampiero Ventura back in November after Italy failed to qualify for the 2018 World Cup.
However, the 58-year-old prefers to take a job at a Premier League club instead, and is already preparing to move to London.
Rumors of Ancelotti returning to Chelsea also emerged after he paid a visit to Stamford Bridge and watched the Champions League clash against Roma back in October.