Arsenal are set to open talks with Ainsley Maitland-Niles over a new deal at the club after deciding against allowing the defender to join Wolves.
Wolves had been keen to sign the 23-year-old and they had an opening bid of £15million rejected by the Gunners last week.
Given Arsenal’s financial worries, the club had originally decided that Maitland-Niles would be allowed to leave as they hoped to recoup as much as £20m for the London-born ace.
However, Sky Sports report that Mikel Arteta has had a change of heart and now wants to keep the defender at the Emirates.
Despite having three years left on his existing deal, Arsenal are now willing to offer Maitland-Niles an extension on better terms to reflect his progress in the last 12 months.
The defender was named Man of the Match after Arsenal’s Community Shield win against Liverpool on Saturday and Arteta express hide happiness with his display afterwards.
‘He has to be able to convince me every day in training that he can compete at this level. Not once every three months – but every three days,’ said Arteta.
‘The way he is playing at the moment is showing me that he can do it. His mentality and the way he is going about every single detail about the preparation of a football game is much better than before.
‘I am delighted and very happy for him because he is really changing a lot of things around him to become the player he can be’.
The defender will meet up with his new international team-mates on Monday ahead of games against Denmark and Iceland.