Arsene Wenger has agreed a new three-year deal worth about four million pounds ($8.10 million) a year to remain as Arsenal manager, the BBC said on Thursday.
The north London [Images] club will announce the deal in the next two days, according to the BBC web site.
Arsenal declined to comment on the report.
Wenger's current deal runs out at the end of the season and there has been speculation over his future since the departure of striker Thierry Henry [Images] to Barcelona in the summer and the exit of vice-chairman David Dein earlier this year.
Arsenal have made a good start to the season and are second in the English Premier League having secured their place in the UEFA Champions League group stage.
The 57-year-old, who signed from Japanese club Grampus Eight in 1996, has guided Arsenal to three Premier League titles and four FA Cup triumphs.
Arsenal have never finished outside the top four since Wenger has been at the club. They were also beaten finalists in the 2000 UEFA Cup and 2006 Champions League finals.
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