The 44-year-old has transformed Arsenal from Champions League qualification hopefuls to Premier League champions over his seven years at the Emirates.
According to BBC Sport, with the summer transfer window closed, Arsenal have shifted focus to extending Arteta’s deal.
Arteta’s current contract is set to expire at the end of the season, but the Spaniard was unequivocal about his future at the club last month.
"Everybody feels comfortable that the timing of the contract is not going to be an issue because my will certainly is to be here and I'm very happy here,” he said.
"My feeling from the club is the same one. That's why everyone is doing things in a very organic way."
Arteta is expected to become one of the world’s highest paid managers with his current deal worth £10m a season plus an extra £5m upon Champions League qualification.