The Argentine has been on the brink of a move to Arsenal for some time, but a breakthrough appears to have been reached after a fee was agreed with Real Madrid.
Several media outlets in Argentina, Spain and England were reporting that the deal was set to be completed in the coming days.
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Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.
Newcastle United are staring down the barrel of relegation to the Championship for the second time in the past eight years.