The England youth international fullback tasted first team action last season.
Banfield told arsenal.com: "He has done really well at full back, some may not think of him as a natural full back but I have always been impressed with him there. We call him a slow burner, he suddenly lights. He has done ever so well, he got involved with the first-team squad and I think the manager was pleased with his performances.
"I think he will be in the category that the manager might think needs another year out on loan. It is all the manager's decision."