The move has long been rumored, but David Hytner of The Guardian is reporting the Gunners have reached a deal with the player on a four-year deal worth £113,000 a week.
Every summer it seems like Arsenal is linked with top young talent, only for the club to buy players who are much cheaper and less talented. Granted, purchases like Mikel Arteta and Santi Cazorla have been good, but the club simply hasn't made the necessary moves to become a real title contender.
Higuain is a step in the right direction.
This is a player who's scored 16 goals in four of the last five seasons. Higuain has become more of a luxury at Real Madrid and lost his place on the first team.
When he's on the pitch, though, Higuain does damage. He scored a goal every 109 minutes last season. Here's where that ranks among some of Europe's best strikers.
Yet he is still unwanted by Real Madrid.
Higuain is not yet a world-class striker, but he can become one. He's only 25 and entering the prime of his career.
Moving to Arsenal gives him the opportunity to become the engine of an attack for the first time in his career. At Real Madrid he played a big role, but he was never really the focal point. When Karim Benzema emerged, Higuain's role decreased even further.
There's no question who will be the top striker at Arsenal.
Olivier Giroud is a good player. He's just nowhere near the quality of Higuain. Then you've got Gervinho, Theo Walcott and Lukas Podolski. Each of those three players are capable of lining up as a centre-forward, but they're much better out wide.
Each and every week it will be the Argentinian striker who's one of the first names on Wenger's team sheet.
Juventus were the other club that looked to possibly be in for Higuain this summer.
The Italian champions already have Alessandro Matri, Sebastian Giovinco and Mirko Vucinic. Fernando Llorente is also signed and will join the team this summer. That's a lot of competition for the starting role.
While Juventus are far from a defensive side, the Gunners' style of play will also help Higuain develop much more as a player.
Arsene Wenger loves to get his team out on the front foot. Arsenal's buildup play is very conducive for a striker like Higuain. He can sit at the point of the attack and finish for himself or set his teammates up as well. In 109 La Liga matches, Higuain has 45 assists.
This is the target man the Gunners have lacked in the absence of Robin van Persie.
RVP really grew as a player at the Emirates. Some wondered if he really had the complete game to become a world-class striker, but he's obviously proven all of his doubters wrong.
Higuain is a lethal finisher and very intelligent on the pitch. But he's not yet the complete player he can become that at Arsenal.
Moving to the Emirates will do a lot for Higuain's Argentina career as well.
Alejandro Sabella can call upon forwards like Lionel Messi, Sergio Aguero and Carlos Tevez before Higuain. Playing each and every week in the Premier League gives the striker a chance to firmly secure his spot on the national team.
With the potential signing of Higuain, it could be a new day at Arsenal, one where price is no longer a road block. The Gunners have a talented young core of players. It's established stars like Higuain who need to be the final pieces of the puzzle. With those pieces, there's no telling how good Arsenal can be.
The Gunners and Higuain is a partnership that should prove fruitful for years to come.