The Gunners have a dilemma in the summer.
If Aubameyang does not renew his contract, it means he is down to a year left on his deal.
He could leave in the summer of 2021 on a free. And Merson thinks that is okay, as he could help them get into the Champions League places next season.
"I'd keep him and say, you know what, give him what you can next year and get us into the Champions League and you can go for free.
"It's hard to buy goals, and he's a natural scorer."