Despite having been provided with regular first-team football during the closing weeks of the season, the 22-year-old has been in no rush to extend his stay in North London.
A wide array of Premier League and European clubs have been monitoring the situation, including West Ham United and Crystal Palace, with the striker keen to ensure that he remains a valued player going forward.
However, according to the Daily Mail, Nketiah has instead opted to continue his career at Arsenal and will pen a five-year deal.
Although a contract has not officially been signed, concluding negotiations is deemed a formality, handing Arsenal a huge boost after a disappointing end to the season.
Nketiah scored a total of 10 goals in all competitions this campaign, five of which were netted during the final month.