The Brazilian, 20, who is rated at around £45m is wanted by The Gunners to replace Alexis Sanchez who is a target for Manchester City and Manchester United.

Wenger is believed to have seen off North London rivals Tottenham in the bidding to land the youngster who came through the youth ranks at Corinthians.

He has already scored seven goals this season, as many as he scored in the whole of last season which was seen as his breakthrough campaign.

Malcom’s representatives were in London last week trying to broker a deal before the transfer window closes at the end of the month. 

Ironically United were also interested in Malcom but are now focusing their search elsewhere believing that he is too expensive.