Carl Jenkinson will put pen to paper on a new deal at the Emirates Stadium until 2020 later today before heading out to West Ham United on a loan deal.
HITC Sport understands that the final touches are being completed on a contract that will see Jenkinson commit his future to Arsenal.
However, the right-back isn't part of Arsene Wenger's first-team plans for the time being, so he will get another chance to get some game time at West Ham.
The 23-year-old had an excellent campaign at Upton Park last term, making a total of 36 appearances for the Hammers, who are keen to welcome him back.
West Ham have a busier season ahead with Europa League demands added to their Premier League fixture list, so Jenkinson could be a useful addition.
Jenkinson had returned to Arsenal for pre-season training but both the Gunners and West Ham were aware that he would probably be starting next season in East London.
The renewal and subsequent loan agreement will be announced in due course and is likely to be welcomed by fans of both clubs.