Arsenal Women have agreed a world-record fee of £1m to sign Olivia Smith from Liverpool Women.
The 20-year-old forward would be the first women's player to surpass the seven-figure barrier with Smith set to have a medical this week.
It would eclipse the $1.1m Chelsea paid San Diego Wave for Naomi Girma in January, which equates to around £890,000.
Smith played in 20 WSL games last season, scoring seven of Liverpool's 22 goals. The Reds finished seventh in the league.
Liverpool paid a club-record £210,000 to sign the forward from Sporting Lisbon last summer, meaning they stand to make a profit of just under £800,000.
The Reds are understood to have rejected multiple bids for Smith this summer from clubs in the Women's Super League and abroad.
In 2019, Smith, aged 15 years and 94 days became the youngest person to play for Canada. She has gone on to earn 18 caps for her country.
Arsenal continue to add to their squad after their Women's Champions League triumph in May. They have already signed Chloe Kelly on a permanent deal, as well as former Liverpool defender Taylor Hinds on a free transfer.
Arsenal making moves to rival Chelsea
Analysis from Sky Sports' Laura Hunter:
This landmark has been a long time in the making. What is surprising is it's Arsenal smashing the proverbial glass ceiling, not Chelsea.
The Blues have historically had the deepest pockets of any WSL club and are not afraid of splashing cash. The £890,000 ($1.1m) deal for defender Naomi Girma in January was evidence of such - let us not forget they signed Keira Walsh in the same window for another six-figure sum.
Now Arsenal are stepping up to the table, buoyed by their new status as European champions. The next step is of course to usurp Chelsea - who completed their six-peat last season - at the top of the WSL. Business geared towards achieving that has been smart and quick this summer.
Agreeing deals with Chloe Kelly and left-back Taylor Hinds, both on free transfers, was a promising start. But the capture of Olivia Smith for a world-record fee is a clear marker of amplified intent. The club are backing Renee Slegers to use the momentum of May's Champions League triumph to spark a takeover.
In domestic terms, Arsenal have trailed Chelsea for many years. They have lived in the shadows of their west London rivals. Have the scales just tipped in the Gunners favour?
