The Athletic says the Gunners want to hand their star man a lucrative new deal this summer.
Saka, 20, has just one year left on a £30,000-a-week contract, although Arsenal have the option to extend it for a further 12 months.
But Mikel Arteta is ready to make Saka one of his top-paid players after the ace struck 12 goals in all competitions this term.
However, Arsenal's chances of keeping Saka could be in jeopardy.
That's because the England international, with 14 caps to his name, is desperate to play in the Champions League.
One major suitor for the versatile winger is Manchester City.
Liverpool have also been linked with Saka this year.
And should either club come forward with a bid, Arsenal could struggle to convince Saka that his future lies in north London.