Balogun has been expected to move on from Arsenal this summer and is not short of suitors following his displays on loan at Reims last term.
The American is a wanted man and Chelsea are amongst the clubs to have taken a keen interest.
The Blues are poised to miss out though as, according to French radio station RMC, Monaco have now agreed a fee with Arsenal.
Monaco have agreed to pay around €45m plus add-ons to Arsenal to sign Balogun.
The Gunners attacker is expected to soon be put through his medical paces and then sign a five-year contract with Monaco.
Balogun will look to continue his superb form in Ligue 1 with Monaco and further kick on with his development at the Stade Louis II.
The 22-year-old scored an impressive 21 goals in 37 Ligue 1 outings last season, with scoring against Monaco included in the haul.
