Following Saturday's 3-1 defeat at West Bromwich Albion, the Frenchman indicated that he has already decided his future but refused to elaborate on whether he would be leaving the Emirates Stadium.
According to sources, a two-year deal was on the table but the 67-year-old has agreed to sign a contract which will keep him at the club for another campaign.
Wenger, who has been at the club's helm for 21 years, sees his contract expire at the end of the season, but he is reportedly reluctant to call time on his tenure in North London.
A number of Arsenal fans have been calling for Wenger to go in recent months and those complaints have been getting increasingly louder as the club finds itself out of the Champions League and five points adrift of the Premier League's top four.
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