Arsenal and West Ham have agreed a fee of £105 million for England midfielder Declan Rice.

The clubs are still discussing how the 24-year-old’s contract will be structured.

It comes after the Gunners’ second bid was rejected after falling short of West Ham’s £100 million asking price.

Earlier, Manchester City withdrew from the race after having a £90 million bid for Rice rejected on Tuesday.

Rice has been with the Hammers since joining their academy from Chelsea in 2014.

Earlier this month, he led them to their first major prize in 43 years, the Europa Conference League.

His deal at the London Stadium was set to end in 2024.

Arsenal’s bid consists of an initial £100 million plus £5 million in add-ons. The first sum is equivalent to what Manchester City paid for midfielder Jack Grealish.

England midfielder Jude Bellingham joined Real Madrid earlier this month for an initial fee of £88.5 million, with the deal potentially increasing to £115 million if add-ons are implemented.

Chelsea paid Benfica 121 million euros (£107 million) for Argentina midfielder Enzo Fernandez in January, making him the Premier League’s most expensive signing.

Declan Rice move: Will the West Ham and England midfielder join Manchester City or Arsenal?
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Following West Ham’s Europa League triumph over Fiorentina, chairman David Sullivan stated that he was “99%” certain Rice would leave the club this summer.

Rice has 15 goals in 245 appearances for West Ham, making his debut in the 2016-17 season after coming through the academy.

He has been capped 43 times for England, appearing in all five of their World Cup matches last winter.

Arsenal, who finished second in the Premier League last season, signed Chelsea midfielder Kai Havertz in a £65 million transfer on Wednesday.