The 27-year-old is expected to travel to London this week to finalise terms, with Gunners boss Arsene Wenger confident of landing the Russia star after tortuous negotiations.
The Frenchman entertained Arshavin at Arsenal's training ground before Christmas and the forward is already thought to have virtually agreed personal terms, despite claims from Zenit last night that his wage demands were still a stumbling block.
The Russian club's board held a lengthy meeting that went on until late into the evening before emerging to announce that they had reached an agreement with the north London club.
Zenit said in a statement: 'Negotiations between Zenit and Arsenal on the transfer of Andrei Arshavin are continuing.
'The clubs have reached an agreement in principle on terms that both sides feel reflect the market value of the player.
'At the moment, the main obstacle in the implementation of the deal are the personal requirements of Andrei Arshavin.
'Andrei Arshavin does not intend to reduce the demands of his personal contract, thus hindering the negotiation process and calling into question all the agreements reached between the clubs.'It is unlikely that Arsenal and the player would be so far apart as Lachter has been sanctioned by the Zenit to talk directly to clubs since the Russian season finished in November.
The Euro 2008 star is desperate to test himself at a higher level and is aware that no other club have made an acceptable offer for his services this month.
Earlier this month he told Sportsmail he hoped the clubs would reach an agreement and, while waiting for a decision this week, he indicated that Zenit's valuation was the only barrier to a move.
'I'm waiting for a final decision,' he said. 'The talks don't depend on me. I haven't been in touch with the club management, so I haven't heard a clear "yes" or "no" yet.'
Arshavin is set to leave Zenit's training camp in Dubai en route to London, though may have to return to Russia first to secure a visa.
He played no part in a friendly on Saturday against the Uzbekistan national team and Zenit coach Dick Advocaat last night suggested that his departure was imminent.
'I think there will be news on Tuesday,' said the former Rangers boss. 'I am constantly in touch with (club general director) Maxim Mitrofanov and I look forward to the latest news.' Arsenal refused to comment.Labels: Andy Murray, Arshavin, Australian Open