The midfielder's current deal expires at the end of the season and he is being linked with a return to Serie A.
But Football.London says the Gunners are planning new contract talks with the player's camp. His current deal does include a 12-month option.
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Gunners manager Mikel Arteta has stated: "I'm really happy with him that's all I can say.
"When we imagined what he could bring to the team, he's doing exactly that and maybe even better.
"The contract situation is more for Edu and the board to manage. But his implication and his capacity to affect big matches is great.