ARSENAL have reached an agreement to loan Nicolas Pepe to Nice until the end of the season.

The Gunners outcast has not played a single minute of their three Prem matches so far this term and has been offered a Ligue 1 escape route.

Nice have reached an agreement with Arsenal that will see them pay half of Pepe's £140,000 a week wages.

But the French side will NOT possess an option to make the move permanent.

SunSport understands that Ligue 1 clubs are required to agree a contract with a player before a loan with an option to buy can be completed.

With Nice unable to offer Pepe what he earns at Arsenal, a loan deal without a permanent option is the simplest course of action.

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Pepe, 27, joined Arsenal for £72million from Lille in 2019.

He has subsequently made 112 appearances for the Gunners, scoring 27 goals and laying on 21 assists.

The winger has two years remaining on his Arsenal deal, meaning he will be expected back in North London next summer.

Pepe was an unused substitute in the Gunners' matches against Crystal Palace and Leicester but was omitted from the squad entirely at Bournemouth last weekend.

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When Pepe's temporary departure is completed, technical director Edu could look to recruit a new winger.

Arsenal admire Wolves ace Pedro Neto, but will only be able to complete a deal that suits them financially.

The Gunners are willing to pay £35m for the Portuguese star, but the Molineux club are set to demand £50m.

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