"The fundamental understanding over the transfer of the player has been achieved between the clubs," a statement read on Zenit's official website.

"At the moment the basic obstacle in realizing the transaction is Andrei Arshavin's personal requirements."

Arshavin, 26, is currently discussing personal terms of his contract with the Gunners, who have been chasing him since last summer.

However, UEFA Cup champions Zenit said that the Russian forward's high demands might be 'outside Arsenal's budget'.

Arshavin grabbed the attention of several European powerhouses after his dazzling displays for Russia in EURO 2008.

The skilful frontman has repeatedly expressed his willingness to leave Zenit this season.