Wenger, 67, will attend today's board meeting where his future, summer plans and a backroom reshuffle will be discussed.
But reports say Wenger will stay and the deal has now been agreed with a formal announcement to follow on Wednesday.
There will be some degree of change after amicable talks between Wenger and chief executive Ivan Gazidis.
Majority shareholder Stan Kroenke has always been a huge admirer of Wenger and has been fully supportive of Wenger.
Frenchman Wenger, who joined the club in 1996, has always wanted to stay.
And while this contract was on the table long before Wembley, the FA Cup has helped change the mood among many fans.
Wenger has held discussions since Saturday and it is understood now that everything is in place for him to stay until at least 2019.
Arsenal are also making one last push today to keep contract rebels Alexis Sanchez and Mesut Ozil - by offering them a combined £30million per season in salary.
The Gunners are set to offer Sanchez a new contract with a two year extension in excess of £275,000-a-week to keep him at the club until 2020.
They have already offered Ozil £280,000-a-week to stay even though the German midfielder’s representatives have been pushing for around £350,000-a-week.
Sanchez likes London and Arsenal hope that plus a mega offer will help persuade him to stay as both have got contracts which expire in 2018.
Bayern Munich have sounded out Sanchez’s representatives while Manchester City are also confident of landing the Chile forward.
But there has not been the same level of interest in signing Ozil and Arsenal are anxious to avoid allowing them to run down their contracts and let them leave for free.
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