Fry told the Peterborough Evening Telegraph: "Both Kerrea and his agent have told me he is desperate to come here on loan for the rest of the season and then think about doing something permanent in the summer.
"Hopefully we can get it resolved with Arsenal and have him in for Saturday.
"All the deals we have done are loans with a view to a permanent move. If these lads do the business for us, the chairman will break the bank for them.
"I'm breaking my neck trying to get things done at the moment but the weather is not making it easy - especially getting players out. Clubs are delaying taking players on loan because they don't want to have to pay wages while games are being called off."