There is still work to do to finalize the deal, including medical and personal terms but the fee is understood to be £45m.
Arsenal is also expected to go back in with an improved bid for Leeds United forward Raphinha.
The north London club put in nearly six months of work with Jesus' representative Marcello Pettinati to ensure they were in pole position to recruit him from the Premier League champions this summer.
Jesus indicated his desire to move to the Emirates at the start of June and the only hindrance so far has been the distance between the valuations of both clubs.
Jesus wants to reunite with Mikel Arteta, who would regularly offer individual coaching and advice when serving as assistant to Pep Guardiola.
Arsenal's strength of pursuit, the fact they are desperately in need of an attacker in his mold, and the opportunity for Jesus to assume more responsibility appeals.
"Gabriel Jesus is a player who has a lot of talent and a lot of potentials, but he needs to have more playing time in order to gain confidence."
"The mentality Pep Guardiola has is to rotate his whole team and give opportunities to every player, but I believe the best version of Gabriel Jesus is when he is motivated and playing consistently.
"When a player like Gabriel is in the team than out of it, it is very difficult for him to have stability and find confidence. I think it is always going to be difficult for that to change at Manchester City."

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