The 39-year-old took less than a season to deliver silverware to Arsenal in the form of the FA Cup, but he has continued to divide opinion after last season's eighth-placed Premier League finish.
However, Arsenal are firmly in Champions League contention under Arteta this season, but the Spaniard's contract now just has 18 months left to run.
The report adds that the Arsenal hierarchy have been equally impressed with Arteta's management off the field, and they are desperate to ward off interest from former club Manchester City.
Arteta has taken charge of 112 games for Arsenal across all competitions, winning 62, drawing 19 and losing 31 of those encounters. body check tags ::