Transfer expert Fabrizio Romano confirmed the club's intent this week, with The Times also reporting that Arsenal plan to open formal negotiations at the end of the season. Initial conversations have already taken place, with both parties understood to be keen on an extension.
Arteta, 44, joined Arsenal from Manchester City, where he served as Pep Guardiola's assistant, in December 2019. His current contract runs until 2027.
He has led Arsenal to three consecutive Premier League runners-up finishes and currently holds a five-point lead over City at the top of the table with three matches remaining — though City have a game in hand.
On Tuesday evening, Arteta became the first Arsenal manager in 20 years to reach a Champions League final. The Gunners beat Atlético Madrid 1-0 at the Emirates Stadium to advance on aggregate after the first leg in Madrid ended 1-1.
Paris Saint-Germain await in the final, having beaten Bayern Munich 6-5 on aggregate.
When asked about his future in April, Arteta kept his focus narrow.
"There is no news on that. We don't have time to discuss that now. The full focus is on what we have to do from here until the end of the season."
The only major trophy of his tenure so far is the FA Cup won in 2020. A league title and European Cup in the same summer would change everything — but Arsenal are not waiting to see how it ends before tying him down.