Striker Olivia Smith becomes first £1m female footballer as she moves from Liverpool to Arsenal
The striker's transfer from Liverpool to Arsenal is a new world record, surpassing the £900,000 Chelsea paid for Naomi Girma earlier this year.
The fee is nearly five times what Liverpool paid Portuguese side Sporting for her a year ago.
Smith, 20, who scored seven league goals last season, called it a "privilege and an honour" to sign for the Gunners.
It's understood multiple Super League and foreign clubs made bids.
"It's my dream to compete for the biggest titles here in England and in Europe and I'm excited to get started and contribute to doing that here with Arsenal," Smith added.
The £1m mark in the women's game comes 46 years after Trevor Francis became the first man to go for that sum when he moved from Birmingham to Nottingham Forest.
Arsenal coach Renee Slegers called Smith an "exciting" player with the potential to make a big impact for the European champions.
"We've been impressed by her mentality and character, excelling in two European leagues at such a young age," said Slegers.
"I know she has a level of ambition that matches our own and we're looking forward to working with her as she continues to grow at the club."
Read more from Sky News:
Smith made her international debut for Canada when she was 15 and has 18 caps for her country so far.
Her season with the Reds was her first in England and saw her nominated for player of the season and rising star awards.
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