Smith Rowe is a club record signing for Fulham and sources say the add-ons are based on Cup and European success for the Cottagers.
The 23-year-old has been left out of Arsenal’s past two pre-season matches as the deal was completed.
Smith Rowe is an academy graduate and a popular figure among supporters but has dropped down the pecking order at Arsenal behind Gabriel Martinelli, Leandro Trossard and Bukayo Saka.
The midfielder has three England caps, the last of which came in 2022.
Meanwhile, Arsenal have signed Italy defender Riccardo Calafiori from Bologna for a fee of up to £42m.
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