The 27-year-old Russian international agreed a “long-term” deal with the Arsenal on Monday.

However final confirmation of the deal was held up while the Premier League assessed whether all the necessary paperwork had been completed before the deadline.

Zenit claimed the fee was 16.9 million Euros, which would break the Arsenal club record, but this has not been confirmed by the Gunners.

“I am so happy to be joining Arsenal,” Arshavin said. “They are one of the leading football clubs in the world.”

Arsenal manager Arsene Wenger said: “He is a versatile player with great experience, who will add real quality to our squad.

“Andrei is an exciting impact player with a huge amount of ability and has been an influential force with both Zenit St Petersburg and the Russian national team in recent seasons.”

The two clubs had earlier disagreed over the fee and over Arshavin’s own personal terms.

Arshavin travelled to London on Monday for a medical to complete the deal and, it is understood, will now return to Russia to complete some personal arrangements before starting work at his new club.

He could now make his debut in Sunday’s north London derby at Tottenham but given that the Russian domestic season finished in November the player is more likely to be allowed some time to build up full match fitness.

Arshavin who plays for Zenit St. Petersburg has been linked recently with a move to the English Premier League with Arsenal and Manchester City being his most likely destination, is thought to have earned some $5.3 million.

The 27-year-old player’s team mates, Portuguese international Danny and Ukrainian star Anatoliy Tymoshchuk, shared second place with Lokomotiv Moscow’s Nigerian striker, Peter Odemwingie, with just over $4 million apiece.

Zenit St. Petersburg are sponsored by energy giants Gazprom, and lifted the UEFA Cup last year.

Arsenal are hoping to sign the Russian playmaker as they look to add to their attacking options during the January transfer window.

While it looks like Arshavin is determined to leave Zenit after interest during the summer transfer window failed to turn into solid acceptable bids. However so far Arsenal have been the only team to make an offer and its fallen far short of the Russian clubs valuation.

Also with Arshavin on high wages even by Premier League standards very few clubs could afford him although Manchester City are rumoured to be ready to make an offer.

Alexei Petrov a Zenit spokesman confirmed that Arsenal has been the only club to have made an official approach for Arshavin, however their initial offer was turned down.

“I can confirm that Zenit did get an official offer from Arsenal about Andrei Arshavin,” Petrov told the Mail on Sunday. It was rejected as insufficient.

“They offered about £10m. No new offers have arrived from them since. At the moment, Arsenal are the only club to have approached us about the player.”

It looks like Arsenal may miss out on their top transfer target Andrei Arshavin after sources from Zenit St Petersburg have said that the initial offer made by the London club has falled well below their valuation of around 20 million euro.

With the current financial crisis and the collapse of stirling the £15 million that would of secured Arshavin in the summer would now be closer to £20 million, with rumours of Wenger having to sell before he can buy a deal could be too much for Arsenal.

The Serie A are keen to land the Russia play-maker this month with a part exchange deal with hitman Vincenzo Iaquinta going to Zenit in part exchange.

The Turin club’s interest could well appeal to Arshavin as his style of play is thought to be more suited to the pace of the game in Serie A.

Russia star Arshavin, 27, who signed a new deal at Zenit last April that included a £24m buy-out clause - which had put off Arsenal, Tottenham and Chelsea.

However Zenit who are willing to let their star player leave in the January transfer window has reduced their demands and they are now more in line with the Gunners’ valuation of the star.

A source close to Arshavin said: “He accepts the financial climate has changed but would still welcome a move to England.”

With Arsenal seemingly in pole position to sign Arshavin, Spurs still may be interested although manager Harry Redknapp has stated that he wont get involved in a bidding war.

Although his agent Dennis Latcher has tried to delay transfer talk until after the competion of the Champions League group phases.

“No decision will be taken before Zenit St Petersburg play against Real Madrid on December 10.”

With tight times in football with the global credit crunch, Zenit may have to lower their rumoured demands of close to 30 million Euro, with many seemingly rich clubs suddenly having very limited budgets, although Real Madrid are still looking like they are interested. Although the summer front runner Spurs may be out of the race with their recent change of manager.

Talking to Sport Express Arshavin said “I gave the best of myself to Zenit, but I already told the president I do not want to continue here.

“I repeated it more than once, but unfortunately my words were not heard and were not taken seriously.

“I want the club to change their attitude and negotiate my move for a reasonable price. If they do so, I will leave, but they remain stubborn. Anyway I do not want to play here next year.

“I will not be able to play if Zenit do not allow me to move in January. I am being honest because fooling people is not what I like.

“My aim is leave on good terms and permit all parts be beneficial.”

UFEA Cup holders Zenit St Petersburg have not only drawn Real Madrid in their group but Italian giants Juventus as well.

Full Champions League draw:

Group A
Chelsea
Roma
Bordeaux
CFR Cluj

Group B
Inter Milan
Werder Bremen
Panathinaikos
Anorthosis Famagusta

Group C
Barcelona
Sporting Lisbon
Basel
Shakhtar Donetsk

Group D
Liverpool
PSV Eindhoven
Marseille
Atletico Madrid

Group E
Manchester United
Villarreal
Celtic
Aalborg

Group F
Lyon
Bayern Munich
Steaua Bucharest
Fiorentina

Group G
Arsenal
Porto
Fenerbahce
Dynamo Kiev

Group H
Real Madrid
Juventus
Zenit St Petersburg
Bate Borisov

Games will be played on the following dates:
16/17 September
30 September/1 October
21/22 October
4/5 November
25/26 November
9/10 December