The 15-year-old has reportedly agreed to pen professional terms with the club after emerging as one of their most highly-rated academy prospects.
Such is his promise, Squawka claims that Spurs and even Barcelona attempted to swoop in and steal a march on the Gunners in their attempts to tie him down to a contract, but the report says that he will stick with Arsenal.
If true, it could be quite a coup for the North Londoners, though he is unlikely to figure in the senior set-up for a few more years yet.
That being said, manager Arsene Wenger has never been afraid of giving youth a first-team shot if they are good enough, with Cesc Fabregas - who was signed from Barca before he signed professionally - and Jack Wilshere both making their competitive debuts at the age of 16.
Smith-Rowe, who has featured in Under-18 outings this season, turns 16 in July.