Fulham are to make Shane Duffy's loan from Brighton permanent to pave the way for the arrival of Arsenal defender Cedric Soares.
Marco Silva's side already have Duffy and Dan James from Leeds as their two designated domestic loans and a deal for Duffy is cheaper to complete.
Cedric will then move the short distance to west London on loan from Arsenal after falling out of favour at the Emirates.
He is an experienced Premier League defender with 158 appearances in the top flight, and Silva made it a priority to bring the 31-year-old to Craven Cottage this window.
With zero league starts this season for Arsenal, Soares should get the chance for more playing time under his former coach.
Fulham will fully cover his wages, estimated to be up to £100k-a-week, as Silva hopes for the full-back to add a winning mentality and versatility to his side.
The pair know each other well from their time together at Sporting Lisbon, where Silva coached Soares from 2014-15.
Fulham, who are currently seventh in the Premier League, are also in talks over a deal for Torino midfielder Sasa Lukic.
Marco Silva is keen to bolster his midfield and the 25-year-old is a footballer with international experience.
The 25-year-old central midfielder featured for Serbia at the World Cup in Qatar last December.