Arsene Wenger has agreed on a new contract with Arsenal that will keep him in charge of the English club until 2011, British media reported on Thursday.
Arsenal would not confirm or deny the reports that the Frenchman was about to sign a three-year contract extension worth around ?4 million (US$8.1 million a year).
But Wenger had told Arsenal fans last weekend to expect an announcement on his future by yesterday and all his recent statements have pointed towards him extending his stay in north London.
Speculation that the 57-year-old might leave Arsenal had been rampant in the wake of the April resignation of vice-chairman David Dein, and the subsequent summer sale of Thierry Henry to Barcelona.
Dein, who brought Wenger to London in 1996, is a good friend of the manager and worked closely with him on transfer deals.
Wenger, however, said last weekend that Dein's departure had not affected his relationship with the club's hierarchy and would not be a barrier to him signing a new deal.
"What I think when I'm negotiating the deal is whether I have the freedom to work the way I want to," he said. "I always had that with David Dein and, since David has gone, I still have it."
The Frenchman has also been encouraged by Arsenal's positive start to the season and the way his squad have coped without Henry.
"Since the beginning of the season something has been happening in this team," he said. "They fight for each other, they have a great togetherness and love for the game."
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