The England international has become one of the most important players in Arteta's side since arriving from West Ham United in a deal worth £105 million in the summer of 2023.
Rice's current contract runs until 2028, with Arsenal also understood to have an option to extend it by a further year. Discussions over improved terms have been ongoing, and the manager is confident an agreement will eventually be reached.
“My feeling is that Declan is very happy here. Every conversation I have with him, he wants to continue here for the long term — and it will be a matter of time until we resolve that,” Arteta said.
Rice has established himself as a central figure in Arsenal's midfield, combining defensive responsibility with an increasing influence in the final third.
The 27-year-old's performances have helped make him one of the first names on the team sheet, and Arteta believes the consistency he has shown is particularly impressive given the demands placed upon him.
“He has been very consistent again. What we demand from him every year is very difficult to do, difficult to maintain,” the Arsenal manager added.
“He is doing it and big credit to him. You have big players for the big matches.”
Arteta's comments came ahead of Arsenal's trip to Liverpool, where he expects Rice and his team-mates to produce a strong performance in a demanding fixture.
“We know the kind of performance we want from Dec and the rest of the boys against Liverpool, to get away from there with three points,” he said.
Securing Rice's future would represent another significant step in Arsenal's efforts to retain their core group of players.
Bukayo Saka signed a long-term contract in February, while William Saliba agreed a new five-year deal last September. Arteta himself also committed to the club until 2030 last month.
Rice's potential extension would underline the club's determination to keep its leading performers together as they continue to compete for major honours.
Reports have suggested that the new terms could bring a substantial increase on his current salary, potentially placing him alongside Saka among Arsenal's highest earners. However, neither the club nor Arteta has confirmed the financial details or announced that an agreement has been signed.
For now, the manager's message is one of confidence. Rice wants to stay, Arsenal want to retain him, and Arteta expects the remaining details to be resolved in due course.