Italian media are widely reporting Inter have snatched Ricky Alvarez out from under Arsenal's noses for €12m.
It was believed the Gunners had a deal in place for the Velez Sarsfield creative midfielder.
However, the Nerazzurri stepped in with a counter-offer and a five-year contract worth €1.2m per season.
According to the Corriere dello Sport, Inter met with his agent yesterday and the move could be completed as early as next week.
Alvarez had also been tracked by Roma and Palermo, but the Giallorossi pulled out of a pre-contract agreement because of the €15m asking price.
The player has an Italian passport, so does not take up an EU slot in the transfer budget.
He's not the only Argentine talent on Inter's wish-list, as they are also looking at River Plate's Erik Lamela and Valencia midfielder Eder Banega.