With the Gunners sitting top of the Premier League table, seven points clear of the chasing pack, Arteta is in a strong bargaining position.
BBC Sport says Arteta's camp and Arsenal are now in new contract negotiations with his current deal having less than 18 months to run.
Arteta is on around £10m-a-year and while talks are "heading in the right direction", the manager is seeking assurances about transfers.
The Basque wants the board to continue to support him in the transfer market after £250m was spent last summer. Arteta is adamant his squad still needs strengthening.
His salary is also expected to be increased to reflect on Arsenal's success this season, despite their double Cup blow over the past week after losing the Carabao Cup final and being beaten at Championship Southampton in the FA Cup quarterfinals.