Nketiah is set to undergo a medical with the Eagles this week after agreeing to personal terms. According to Fabrizio Romano, the deal includes an initial £25 million fee for the striker, with an additional £5 million in performance-related add-ons.
Arsenal had preferred to sell Nketiah rather than loan him out, the report states.
The 25-year-old previously spent the first half of the 2019/20 season on loan at Leeds United.
Now, as the two clubs wrap up their agreement, Nketiah has been granted permission to proceed with his medical, as reported by The Athletic. He will become Oliver Glasner’s fourth signing of the summer, following Ismaila Sarr, Chadi Riad, and Daichi Kamada.
Palace have had a sluggish start to the new season, losing their first two games against Brentford and West Ham.
In contrast, Nketiah has been an unused substitute in Arsenal’s victories over Wolves and Aston Villa. His departure from the Emirates Stadium marks the end of a nine-year stint with the Gunners, having first joined their academy from Chelsea at the age of 16 before making his way into the senior squad.
During his 168 appearances for Arsenal, Nketiah scored 38 goals and provided seven assists. He also helped the team secure the FA Cup in 2020 among other trophies.
This summer, several clubs expressed interest in the England international, including French side Marseille, who were close to a deal before it fell through. Nottingham Forest and other Premier League teams also showed interest in Nketiah.