Arsenal have rejected an opening offer from Monaco for striker Folarin Balogun but have agreed on a deal that sees fellow United States international Matt Turner join Nottingham Forest, sources told ESPN.
The Premier League club value Balogun at around €58 million ($64m) and are thought to be open to letting him leave at the right price, with Inter Milan also expected to enter the running for his signature.
Balogun has two years remaining on his Arsenal contract and would prefer a permanent move given the likely lack of first-team opportunities at the Emirates Stadium even after a knee injury ruled Gabriel Jesus out of the first few weeks of the season.
Balogun, 22, was not part of the matchday squad for Sunday's Community Shield win over Manchester City at Wembley, having recently been sidelined with a foot problem.
Balogun impressed in a loan spell at Ligue 1 side Reims last season, scoring 21 goals in 34 starts, but he is behind new signing Kai Havertz and Eddie Nketiah in the pecking order to spearhead Arsenal's forward line.
Meanwhile, goalkeeper Turner is set to leave Arsenal having made just seven appearances for the club since joining from New England Revolution in a deal worth £5.75m last summer.
The two clubs are yet to agree on a fee, but Arsenal remain confident of reaching an agreement below Brentford's £40m asking price with negotiations expected to continue this week.