The England midfielder has become one of Mikel Arteta’s most important players since joining Arsenal from West Ham United for £105 million in July 2023.
Rice’s current contract runs until the end of next season, but talks over an extension have been progressing for several months and are now close to completion, reports BBC Sport.
The 27-year-old has made 165 appearances for Arsenal and helped the club end their 22-year wait for the Premier League title last season.
A new agreement would bring a substantial increase to Rice’s reported £240,000-a-week salary. He is expected to move into the same wage bracket as Bukayo Saka, who is believed to earn around £350,000 a week.
Rice has established himself as a central figure in Arsenal’s midfield since his move from West Ham, with his versatility allowing Arteta to use him in more advanced positions as well as his usual deeper role.
His physical presence, passing ability and capacity to cover ground have made him a regular starter for the Premier League champions, while his performances have also strengthened his position with England.
Rice has won 80 caps since switching his international allegiance from the Republic of Ireland in 2019. He withdrew from Thomas Tuchel’s England squad during the recent international camp but remains firmly established at international level.
Tuchel has previously described Rice as one of the “best midfielders in Europe”, underlining the regard in which the midfielder is held by the England manager.
Rice is expected to be involved when Arsenal host Leeds United in the Premier League on Saturday.
The contract development comes only a day after Arsenal confirmed Arteta had signed a new four-year agreement, keeping the manager at the club until 2030.
The Premier League champions are therefore moving to secure the futures of two central figures in their recent rise.
Rice’s new contract would reflect his importance to Arteta’s side and is also set to place him among Arsenal’s highest-paid players.