Arsene Wenger has informed Arsenal that he intends to sign a new, two-year contract.

Sportsmail understands the Frenchman told the club hierarchy that he wants to extend his stay at the Emirates Stadium during a meeting last week.

The north London club are adamant that Wenger's future will be resolved as a joint decision.

Arsene Wenger has told Arsenal he wants to sign a new contract at the Emirates Stadium

But last week's talks are a major step towards the Frenchman continuing his stay at the club.

After having doubts over his future, Wenger is now determined to stay and transform the club's fortunes.

Victory against Manchester City on Sunday would help Wenger's cause. Mesut Ozil is expected to be fit for the clash after recovering from the hamstring strain that kept him out of the defeat against West Brom. The midfielder played for Germany against Azerbaijan last Sunday.

Forward Alexis Sanchez could be opening the door to a move — perhaps to Chelsea — after saying: 'I am happy in London and I hope to finish my contract at Arsenal. I want to stay in a winning team and keep playing in the same city. I want to play in a team that has aspirations.

'I'm 28 years old, I still have a lot ahead of me.'