In a groundbreaking move, Arsenal have agreed a world-record transfer fee in excess of £1m with Women's Super League rivals Liverpool for forward Olivia Smith. This deal surpasses the previous record of £900,000 that Chelsea paid for United States defender Naomi Girma in January.

The transfer for the 20-year-old Canada international Smith is subject to a medical and the agreement of personal terms. Smith joined Liverpool from Portuguese side Sporting last summer, scoring seven times in 20 WSL appearances during her debut season. Her initial move to Liverpool was a club-record fee of over £200,000.

Arsenal have also bolstered their squad with the free signing of Chloe Kelly from Manchester City and Taylor Hinds, a former Liverpool left-back. Smith has represented Canada 18 times, scoring four goals.

Liverpool, who ended last season in seventh place, view the sale of Smith as an excellent opportunity to strengthen their squad by reinvesting the transfer fee. The club is currently without a manager since sacking Matt Beard in February, with former Manchester City boss Gareth Taylor the leading candidate to take over.

Reacting to the news, former Manchester City and England midfielder Izzy Christiansen expressed her surprise at the fee. She praised Smith for joining a strong Arsenal team with a star-studded forward line, including Chloe Kelly, Beth Mead, Caitlin Foord, Katie McCabe, Alessia Russo, and Stina Blackstenius.

Christiansen believes that Smith's arrival at Arsenal adds depth to a Champions League-winning squad, who aim to repeat their success and win the WSL as well. She added that it remains to be seen whether Smith will start immediately, but this move is a project for the near future in an Arsenal shirt.

With this record-breaking transfer, Smith is poised to become the first £1m footballer in the women's game. This significant move indicates the growing popularity and commercial viability of women's football.