Arsene Wenger has told Arsenal owner Stan Kroenke he will accept the Premier League club's offer of a new two-year contract, according to reports on Tuesday.
Wenger met Gunners majority shareholder Kroenke and chief executive Ivan Gazidis on Monday to discuss his future before his contract expires next month.
The 67-year-old has been heavily criticised this season, with Arsenal fans calling for his resignation after their team failed to qualify for the Champions League for the first time in 20 years.
Suggestions that Arsenal may insist on hiring a director of football to work with Wenger had sparked claims the Frenchman was considering ending his 21-year reign.
But after leading Arsenal to an impressive 2-1 FA Cup final victory over Premier League champions Chelsea with Kroenke watching from the stands on Saturday, Wenger had hinted he was willing to stay.
And the Daily Mail and Daily Mirror reported Wenger has informed American tycoon Kroenke, who remains a firm supporter of his manager, that he wants to remain in charge of the north London club.
A formal announcement of Wenger's new contract is expected to come on Wednesday.
Wenger, who has won three Premier League titles and a record seven FA Cups with the Gunners, will attend an Arsenal board meeting on Tuesday when the contract should be rubber-stamped.
Wenger will outline his plans for close-season signings and while there may still be some tinkering with his backroom staff it will not be without his approval.
Wenger, who has won the FA Cup three times in the last four years, showed how much the abuse had affected him last week when he spoke to the BBC before the Wembley showdown with Chelsea.
"I believe there's a difference between being criticised and being treated in a way that human beings don't deserve," he said.
"The lack of respect from some has been a disgrace and I will never accept that. I will never forget it.
"The behaviour of some people during the season, that is what hurts me most.
"It's not my person that is hurt but the impeccable image of the club around the world.
"That kind of behaviour does not reflect what Arsenal is."