Off contract in June, the 28-year-old broke his right ankle in November's Europa League draw at home to Sporting Lisbon and - while he is unlikely to return this season - Emery insists he is "progressing very well".
Emery said: "He is working and starting to touch the ball and to work on the pitch. His progress with such a big injury is going very well.
"It's difficult for him to play matches this season but he is progressing very well and maybe the doctor will tell us he can come train with us in the last weeks of this season.
"After, his individual thing is to speak with the club (about his future)."
The Basque continued: "Every (English) team needs English players.
"Danny has his injury now. He was going with the national team and we were happy for him and the national team.
"(Promising English players) are now in (Arsenal's) under-18s, under-19s, under-20s and under-21s teams.
"We have a lot of players with the possibility to grow up with us and be part of our future, and also with the national team."