The Frenchman's £7m-a-year contract expires in 2014, but chief executive Ivan Gazidis is determined to keep him at the club.
"It's not a sense of sentimentalism, not a reward for our services, it's a belief that we have an incredible manager who loves this club and is the best man to lead us forward," he told The Mirror.
"We're really confident about the direction that the club is heading. We're coming through strongly and we believe we're really well placed. We hope and believe that Arsene will be a part of that as we move forward.
"He is written into our DNA, he's incredibly fit, has played in some staff games recently."
Wenger joined the Gunners in 1996 from Japanese club Nagoya Grampus Eight.