Jack Wilshere is set to sign a new three-year deal at Arsenal, with an optional 12-month extension, which will keep him at the Emirates Stadium until 2022.
Wilshere's current £110,000 a week deal expires next month and Arsenal had offered the England midfielder a new deal worth £90,000 a week plus add-ons and bonuses.
But Wilshere rejected that offer amid concerns that the proposed pay cut meant Arsenal did not value him that highly. The Mirror reports that Everton, Wolves, Juventus and AC Milan would all be vying for the 26-year-old's signature if he did not agree a new deal with the Gunners.
Those fears now seem to have been laid to rest though after Arsenal tabled a new bid on Tuesday, which they believe Wilshere will sign. This improved offer keeps Wilshere's wage at £110,000 a week but with additional incentives on top of that.
These incentives reportedly include a pay as you play aspect which will represent a significant pay rise for Wilshere as long as he is playing regularly for Arsenal.
Outgoing Arsenal manager Arsene Wenger has not been involved in contract talks but stated his belief that Wilshere would sign a new contract.
"The latest conversation I had with Jack, it looks positive for the club," said Wenger. "I’m convinced, like I was always, that his future is here."
It looked as though Wilshere's days with the Gunners were numbered at one stage, after he was loaned out to Bournemouth for the 2016/17 campaign.
He has fought his way back into the first team though, making 37 appearances this season, his highest tally since 2010/11.