Arsenal rejected a £34m offer from Monaco for Folarin Balogun (Getty)

Arsenal striker Folarin Balogun has reached an initial agreement with Monaco, according to reports in France.

The 22-year-old impressed during his loan spell at Reims last season, scoring 21 goals in Ligue 1 for the French club.

Balogun had hoped to secure a regular role at Arsenal for the upcoming campaign but his future appears to be away from the Gunners after he was left out of the squad for their victory over Manchester City in the Community Shield on Sunday.

According to RMC Sport, Monaco’s opening bid of €40 million (£34m) has been rejected by Arsenal but the Ligue 1 side intend to return with an improved offer.

The report claims that Monaco have made the signing of Balogun their priority and have an ‘agreement in principle’ with the striker.

Folarin Balogun scored 21 goals in Ligue 1 during his loan spell at Reims last season (Getty)

However, Monaco are expected to face competition from Inter, who are still search for a new striker after Romelu Lukaku rejected a return to San Siro this summer.

Speaking about his future at Arsenal last month, Balogun said: ‘I obviously went away and the point was to prove I could play first-team football.

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‘I feel I was able to do that and show people I can play at that level.

‘I think with me coming back it’s not really much of a situation where I think I can need to try extra hard to prove something, I think it’s a decision that’s not really with me.

‘Whatever happens I’m cool with it.’

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Balogun is a step closer to leaving Arsenal.