Bordeaux winger Malcom appears to have snubbed Tottenham's interest and wants to move to fellow Premier League side and North London rivals Arsenal.
According to The Sun, the 20-year-old has met with representatives from both clubs in recent weeks, but the Brazilian appears to prefer a move to the Emirates.
The fee allegedly agreed could be as high as £44m for a man who has netted seven Ligue 1 goals this season as well as providing four assists for a side who are just two points above the relegation zone.
The Brazil U23 star has been one of the most sought-after players in this window, although Arsene Wenger has distanced themselves from making a move for Malcom for now at least.
The Gunners boss said: "He is a good player but nothing is happening. We are not on that case at the moment."
A move to Arsenal could be finalised as soon as this month should Alexis Sanchez leave the Gunners in this window, as both Manchester clubs lead the chase for the Chilean star.
The 29-year-old is currently into the final six months of his contract and looks destined to leave Arsenal in 2018, with Malcom considered to be a direct replacement who, like Sanchez, is comfortable operating on either wing or as a central striker.