Tottenham Hotspur have agreed an undisclosed fee to sign Manchester City striker Emmanuel Adebayor.
City could now be ready to make their first firm move to sign Arsenal's Robin van Persie once the Togolese striker completes his exit.
Adebayor, 28, scored 18 goals in 37 appearances during a loan spell at Spurs last season.
It is understood City were keen to lower their wage bill before moving for their transfer targets. Adebayor is reported to be one of the club's biggest earners while Wayne Bridge has left for Brighton.
Earlier this month Van Persie, 28, announced he would not be renewing his Arsenal deal. With the striker out contract at the end of the season, Arsenal face losing him for nothing next summer if they do not sell him before 31 January.
It is believed that in addition to City, Manchester United and Juventus are also interested in the striker, who scored 41 goals in 53 games for club and country last season.
Adebayor himself moved to Manchester City from Arsenal, signing for £25m in July 2009, scoring 15 goals in 34 appearances.
After falling out of favour under manager Roberto Mancini, he joined La Liga side Real Madrid on loan in January 2011, but they chose not to make the move permanent.
He helped Spurs finish fourth in the Premier League last season and this week new Tottenham manager Andre Villas-Boas said: "We are extremely willing to have Adebayor on board with us."
Adebayor scored 46 goals in 105 appearances for Arsenal after Arsene Wenger bought him from Monaco in January 2006.