The newly-formed Red & White company has been buying more shares in Arsenal in the last week.

Arsene Wenger's decision today to extend his contract with Arsenal owes much to David Dein, who now chairs Red & White, persuading him to stay on at the club.

Dein and Wenger are close friends and it is understood the former vice-chairman played a significant role in the Frenchman agreeing a new deal.

There have been suggestions that Dein's enforced exit would lead to Wenger leaving the Gunners too when his current deal expired at the end of this season.

However the emergence of Dein as chairman of Red and White has made it clear that his involvement with Arsenal is by no means over - even if it is at arms-length for the time being.

A source close to Dein told the Daily Mail: "David has said publicly that Arsene is the best person to manage Arsenal, and in private conversations between them he has left him in no doubt that he would like him to extend his contract."

The relationship between the two men, however, will only increase speculation that a takeover bid for Arsenal is nigh.