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Arsenal defender William Saliba has agreed a five-year contract, sources have told ESPN.
The France international is yet to sign the deal, but, first reported by the Athletic, he has agreed terms on the three-year extension in the belief that Arsenal is the right club at this stage in his career.
The deal is a blow to Real Madrid, who were monitoring Saliba's situation as they are looking for a centre-back amid the uncertain futures of David Alaba and Antonio Rüdiger.
William Saliba will sign a new long-term contract at Arsenal, sources have told ESPN. Harry Murphy - UEFA/UEFA via Getty Images
Sources said the LaLiga giants rated Saliba ahead of Liverpool's Ibrahima Konaté, although any move would now seem highly unlikely due to the 24-year-old's new long-term contract.
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Saliba joined Arsenal at 18 years old before making loan moves to Saint-Étienne, Nice and Marseille. Since establishing himself in the Arsenal first-team, he has made 139 appearances for the club and been a crucial part of Mikel Arteta's years-long rebuild.
He has helped Arsenal compete for the Premier League title in recent seasons, as well as making a stellar start this campaign in which the north London club are second with 10 points from their first five games.
Information from ESPN's Rodrigo Faez contributed to this report.