Arsenal will disburse £105 million for the players services, with £100 million paid first with another £5 million in bonuses.
Daily Mail reports that personal terms are as good as agreed at this point and he will join the Gunners on a long term deal.
Arsenal had various bids rejected for Rice until a deal was finalised with West Ham for the 24 year old.
He was also linked with a move to Premier League champions Manchester City this window.
Rice racked up four goals and two assists in 37 Premier League games last season.
Arsenal accumulated 84 points from 38 Premier League games last season and they were second in the division.
