Arsenal and Emile Smith Rowe reportedly already have a 'verbal agreement' over a new deal for the youngster at the Emirates Stadium.
Smith Rowe is understood to have been the subject of two failed bids from Aston Villa, who are aiming to take advantage of the current uncertainty surrounding his contract situation.
However, Arsenal are said to be confident of tying the playmaker down to a new contract, and transfer expert Fabrizio Romano claims that the two parties reached an agreement of sorts before Smith Rowe jetted off on holiday.
Speaking to CBS Sports' Que Golazo, Romano said: "He's not signed yet. But before Emile was going to holiday this summer, he had like a verbal agreement ready with Arsenal, this is what I know.
"So he's waiting to come back from holiday and then to meet with Arsenal, complete some details and then sign the new contract with Arsenal.
"So from Smith Rowe's side, he wants to stay at Arsenal, many times he said about he's living his dream playing for Arsenal, he wants to stay and Arsenal are so happy with him.
"So if someone wants to break the agreement, verbal agreement between Smith Rowe and Arsenal, they need to break the bank.
"So my feeling is that Smith Rowe is staying, and they're gonna extend this contract because as I said, some weeks ago, it was already prepared."
Smith Rowe scored four goals and assisted seven more for Arsenal in all competitions last term, and his current deal is due to expire in 2023.
