Sky sources understand Arsene Wenger has agreed a new contract with Arsenal and we expect an official announcement on Wednesday.
The club are also expected to announce whether they are looking into appointing a director of football to work alongside or above Wenger, or indeed whether that role could be filled by the Frenchman.
Sky Sports News HQ reporter Ian Bolton said: "It is my understanding that Arsene Wenger is going to stay at Arsenal.
"He is set to sign a new two-year deal.
"Sky sources are telling us there will be an official announcement from the club tomorrow.
"We believe that Arsene Wenger has the support of the Arsenal board and, perhaps significantly, the support of majority shareholder Stan Kroenke."
The 67-year-old Wenger has been at Arsenal since 1996 and has led them to three Premier League titles and seven FA Cup trophies, the latest of which coming when they beat Chelsea at Wembley on Saturday.
However, with his previous contract set to expire in the summer, some fans had voiced their desire for his exit, citing a disappointing Premier League season which ended with failure to qualify for the Champions League for the first time in 19 years.
Wenger has implied that he would like to stay at the Emirates and said after the defeat of Chelsea: "You can't have 35 years at the top level if you're not the right man to do the job.
"I just want to do well for the club. It's down to the board members. Am I the right man to take this club further? It's not about popularity, it's about competence."
Wenger subsequently added that the impressive display against Antonio Conte's side at Wembley proved his appetite for the job remains.
"The best presentation [to show the board] is to watch the game," he added.
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"I've played until the end of my contract, which is today basically. I think I have shown you that I have exactly the same commitment."