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Arsenal are ready to offer manager Arsene Wenger a new deal.

The Gunners ' 66-year-old boss will start next season with just one year left on his contract and the North London giants' hierarchy want to extend that by an additional two years.

There was unrest among a section of the club’s fans last season - with celebrity fan Piers Morgan particularly vocal - as they failed to capitalise on the inner turmoil at both Manchester clubs and Chelsea as their title challenge amounted to nothing.

However, Wenger made it clear he intended to stay and signalled his intent to strengthen his squad with the signing of Switzerland international midfielder Granit Xhaka from Borussia Monchengladbach for £32million.

(Image: John Walton/PA Wire) (Image: Reuters / Stefan Wermuth) (Image: Reuters / Stefan Wermuth)

Wenger is also keen to sign Jamie Vardy from Leicester for £20m, to give his squad more firepower.

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That deal has yet to materialise as the champions will make the England striker a £120,000-a-week offer to stay.

If Wenger fails to get Vardy, he could well switch to the Poland star Robert Lewandowski .

Bayern Munich rate the 27-year-old – who has three years left on his contract - at £55m, but Wenger has shown this summer he is prepared to spend big — though he would have competition should the Germans decide to sell.

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Manchester United, Manchester City, Chelsea and Liverpool will all enter the race should the free-scoring frontman, also linked with Real Madrid this summer, come on the market.