Nketiah had held talks with both Marseille and Nottingham Forest earlier in the transfer window, only for both moves to collapse. But the centre-forward has now found a new home at Crystal Palace.
The Eagles will pay Arsenal an initial £25million for Nketiah, and an extra £5m will be due if certain conditions are met.
In his first interview as a new Palace player, the 25-year-old – who will wear the No 9 shirt at Selhurst Park – said: “It’s amazing to sign for Crystal Palace – I’m excited to get going. Every time I come back to South London, it always puts a smile on my face, so it’s good to be back home.”
Palace chairman Steve Parish added: “It’s brilliant to welcome Eddie, a senior England international, back to South London – we are delighted he has signed for Crystal Palace. I am confident that his energy, talent and hunger to succeed will endear him to his new teammates and supporters alike.”
Arsenal boss Mikel Arteta is a big fan of Nketiah and sent the striker the following parting message: “We are so grateful to Eddie for his performances with us. He is a player who has developed well through our Academy and now he takes this opportunity with Crystal Palace.
“Eddie is a top professional, loved by everyone at the club, who wanted and needed to play more minutes. We wish Eddie well as he moves onto his next challenge.”
Arsenal sporting director Edu added: “Eddie has had a great journey from our Academy into our first team, and we send him our thanks and best wishes as he moves to Crystal Palace.
“It is important for Eddie to be playing regular first-team football and we are happy we have concluded a very positive transfer deal for his move.
“Eddie has a lot of friends here after many years at the club and we wish him good luck in his next step.”
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