The Daily Mail says Arsenal sources say the situation is far more promising than it was a month ago and are confident that the outcome will be positive. It is understood that negotiations will centre on the duration of the contract when Wenger meets with Gunners officials next week.

He has been offered a £4million-a-year three-year deal but the Frenchman may want a get-out clause allowing him to leave at the end of any particular season, or even a one-year rolling contract similar to Sir Alex Ferguson's at Manchester United.