The statement was released on the club's website on Friday.
In this statement, Porto said: “Deal complete for amount of €40m, and of these, €5m are dependent on achievement of sports objectives”.
Pablo 22, has now arrived in London to undergo a medical and complete his shock £30 million (€35m) switch to north London. He will sign a five year contract.
The Gunners hope to confirm the signing quickly, either over the weekend or early next week.
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