The Gunners have turned down the deal, but the Merseyside club are expected to return with a second bid for the 23-year-old Nigeria international.
Iwobi will have plenty of competition for a place in Unai Emery’s starting XI this season, with new club-record signing Nicolas Pepe, Henrikh Mkhitaryan, Reiss Nelson and even Pierre-Emerick Aubameyang vying for a spot out wide.
Everton have just over 24 hours to complete the deal, with the summer transfer window slamming shut at 5pm on Thursday.
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