The veteran coach will sign a new contract at the Emirates Stadium ahead of the 2017-18 season after meetings at a boardroom level.
Arsene Wenger is set to stay at Arsenal and will sign a two-year contract at the club. The 67-year-old's new deal has been approved despite a boardroom split and his salary will remain the same.
Wenger and majority shareholder Stan Kroenke held a private meeting in a secret location on Monday, and the details of the Frenchman's contract were confirmed 24 hours later in a boardroom meeting.
A formal announcement is likely to follow on Wednesday. The structure of the club is set to remain the same under Wenger's management ahead of the 2017-18 campaign.
The Frenchman's future was shrouded in uncertainty ahead of last weekend's FA Cup final against Chelsea.
Arsenal emerged victorious, despite being underdogs against the newly-crowned Premier League champions, and the club are now poised to confirm Wenger's stay at the club.
As revealed by Goal earlier in the campaign, transfer fixer Dick Law is set to remain in his role despite pressure over recent failed signings.
Wenger has come under increased pressure from supporters this season as the Gunners slipped to a fifth-placed finish in the Premier League that saw them miss out on qualification for the Champions League for the first time since Wenger took charge in 1996.
Though winning the FA Cup has placated some fans, there is still concern over how playing in the Europa League could affect both the current squad and the potential for new signings.
Mesut Ozil and Alexis Sanchez are still to agree new contracts in north London, with Manchester City confident they can lure the latter to the Etihad Stadium after talks were held over the weekend.
In other news, Borussia Dortmund’s head coach Thomas Tuchel has left the club, the Bundesliga side confirmed Tuesday, denying that the departure was sparked by a public spat with the club’s chief executive.
“We thank Thomas Tuchel and his training staff for their successful work at BVB,” said the club, adding that the “cause of the separation is by no means a disagreement between two people”.
Further reports have it that Borussia Dortmund actually sacked head coach Thomas Tuchel amid a bitter dressing room divide and a third-placed Bundesliga finish.
The club confirmed his departure following widespread claims that Tuchel's relationship with BVB's players has deteriorated to the point of being unworkable.
Although Dortmund won the DFB-Pokal on Saturday, it was overshadowed by a hostile player reaction to Nuri Sahin's absence from the matchday squad.
Club captain Marcel Schmelzer and influential forward Marco Reus both distanced themselves from the 43-year-old, who will receive 2.9 million in compensation according to Bild.
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