The 31-year-old has less than a year remaining on his contract with the Gunners and could potentially leave on a free transfer next summer if he fails to agree a new deal.
Aubameyang, who is currently earning £198,000 per week, has reportedly been offered an increase to £250,000 a week in order to remain at Arsenal.
And Arteta believes the striker, who has scored 70 goals in 109 appearances since he joined Arsenal in January 2018, will reach an agreement with the club.
‘I keep being positive, we have some really good talks with him and his agent,’ Arteta said on Thursday.
‘I am pretty confident we’re going to find an agreement soon. That’s my feeling again.
‘I think he should be very happy if he is able to stay at the club for a long time.
‘I think people will be delighted with that news.’
Arteta is also confident that Arsenal will ‘challenge for the top’ this season.
‘Let’s see what we look like at the end of the transfer window,’ said the Arsenal manager.
‘I would probably be in a better condition but it does not matter with the squad we have because we will challenge for the top, 100 per cent.’