Nketiah’s current deal is due to expire at the end of next month – but he is now in the final stages of agreeing fresh terms.
Both sides are hopeful a new contract will get signed, with Nketiah now convinced Arsenal is the right place for him.
The 22-year-old had previously this season rejected multiple contract offers as he was unsure about committing his future to the Gunners due to a lack of minutes.
But a bigger role towards the end of the season – which coincided with five goals in his last seven games – appears to have helped facilitate a change of heart.
“There have been talks and offers of a new contract, but my aim is to play football and play regularly,” Nketiah told the Beautiful Game Podcast last month.
“I love Arsenal, so I just want to focus on the season and make sure I finish in a good way and then sit down and see what the best opportunity is to allow me to take those steps and develop.”
Nketiah’s reluctance to sign a new deal sparked interest from clubs, particularly Crystal Palace.
The Eagles tried to sign the striker last summer, but talks broke down over personal terms after they agreed a fee with Arsenal.
Palace had been ready to return for Nketiah this summer when he was a free agent, but he is now close to staying at Arsenal.
Nketiah signing a new contract would follow in the wake midfielder Mohamed Elneny also penning fresh terms this week.