The Gunners wanted to make the loan deal permanent next summer but was told to meet the player’s £14m buy-out clauses.
Real Madrid initially were reluctant to sell the Turkish international permanently after they bought him on a six-year-deal from Borussia Dortmund only a season ago.
However, after prolonged persistence of manager Arsene Wenger, the Spanish giants have apparently agreed to sell the playmaker but want a fixed price of £14m to be included in the deal.
The Daily Mail understands that there has been a compromise between both the parties and finally a deal can be struck that will make Nuri Sahin an Arsenal player shortly.
Liverpool, another English club were also intereste...