The Frenchman, who has been with the Gunners since 1996, has been reluctant to publicly commit his future to the Emirates outfit beyond the end of the current campaign.
But on Monday, chief executive Ivan Gazidis provided the first confirmation from the club that the 64-year-old would be extending his Arsenal career into a 20th season.
"We have always supported Arsene, the board has always been completely behind him as has (owner) Stan Kroenke, and Arsene has always been committed to this football club," Gazidis told reporters.
"So we are comfortable with the position, we are relaxed about it. Arsene will be extending with us. And at the right time we will make that announcement."
After a poor start to the season, which saw them beaten at home by Aston Villa, Wenger has since steered Arsenal to the top of the Premier League table and into the last 16 of the UEFA Champions League.
They have also reached the FA Cup fifth round, where they will face Liverpool.
Wenger, who has led Arsenal to three Premier League titles, has also been promised extra funds to spend after the club agreed a new kit deal with Puma, which is thought to be the most lucrative in the history of British football.
In the last transfer window, the club smashed their transfer record to recruit midfielder Mesut Ozil in a £42.4m deal.
This window, they have been linked with a move for Ozil's German international team-mate Julian Draxler, who currently plays for Schalke.