The Gunners boss will put pen to paper on a fresh deal at the Emirates, that will see him remain in charge until 2017
The Frenchman's future has been the subject of some speculation after failing to ink an extension on his deal at the Emirates last season.
However, after leading his team to an FA Cup success on Saturday to end their nine-year trophy drought, Wenger will now sign a new contract at the club to further the feelgood factor at the Londoners.
According to The Mirror, Wenger will pen a fresh three-year deal within days, before he begins his preparations for next season.
Wenger, who has signed up to provide analysis of the World Cup for French station TF1, is understood to be keen to formally announce the extension before the tournament begins next month.
Asked if he would be signing the deal soon, the report quotes Wenger as saying: "Yes, because I will go to Brazil on June 10. It will be done before then.”
The deal will take Wenger up to 21 years in charge of the Gunners when it reaches its conclusion in 2017 and the news will be seen an added bonus to what has been a superb weekend for the club's supporters.
Their much-reference nine-year trophy drought was ended when they came back from two goals down to beat Hull City in the FA Cup final on Saturday, before the club embarked on a huge victory parade throughout London on Sunday.
The Gunners' board are understood to be prepared to back Wenger heavily in this summer's transfer market, with the likes of Bayer Leverkusen's Lars Bender and Schalke forward Julian Draxler repeatedly linked with a switch to the Emirates.
However, the French boss is likely to be in the market for a right-back, with Bacary Sagna expected to leave for Manchester City on a free transfer.