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Arsenal and OGC Nice have agreed on a loan deal for Nicolas Pepe to join the French club for the season, according to multiple sources.
According to the local Nice newspaper, Leicester City entered the race for the 27-year-old, and offered to cover the full wages.
However, Pepe chose the French side.
According to Fabrizio Romano, Nice will cover 'most' of the player's wages.
Charles Watts of GOAL, reports that Pepe will now travel to France to undergo his medical and finalise the move.
Pepe joined Arsenal in 2019 for £72m from Lille, breaking the club's transfer record.
The winger's career started slowly, and struggled for game-time under the manager who bought him, Unai Emery.
Emery's sacking brought Mikel Arteta's arrival and Pepe seemed to gain some form, playing an important part in Arsenal's FA Cup win.
However, the start of the season didn't go well for Pepe, again struggling for game-time.
Again though, Pepe ended the season extremely well and finished the season as Arsenal's top scorer in all competitions.
Unfortunately the form of young Bukayo Saka in Pepe's favoured position ended any hopes for more game-time.
The Englishman was consistently excellent and simply un-droppable.
Arsenal's exit from European competition limited the Ivorian's game-time further.
Pepe and Arsenal will hope Pepe can revive his career in Ligue 1, allowing the club to recover some of the fee they paid in 2019.
Pepe's departure should allow Arsenal to pursue a replacement winger, and will hope to sign a player ready to compete with Saka.
The rumoured priority target is Wolves winger Pedro Neto.
Fans will have to wait for the next days to see if the club are successful in their pursuit of the 22-year-old.