The 23-year-old England international hasn't been available for the Gunners since suffering a hamstring tear - which later required surgery - in December during a win over Crystal Palace, but the club appear ready to extent his current deal.
According to BBC Sport, Arsenal are ready to open formal discussions with Saka's representatives regarding an extension.
He signed his current contract - which is believed to be worth at least £10 million a season - in 2022, and it's set to expire at the end of the 2026-27 campaign.
Early talks have already started, and discussions are expected to accelerate as the Gunners look to avoid any uncertainty around his future.
Before his injury, Saka has racked up nine goals and 13 assists in 24 matches across all competitions.
And after Arsenal's 1-0 win over Chelsea on Sunday (16.03.25), manager Mikel Arteta gave a promising update on the player's immediate future.
Saka was seen pitchside before the game, and the boss said he is edging "closer" to a return after the international break.
Arteta previously confirmed the player was devastated by the news of his injury but is hopeful that the star can still contribute to the dressing room despite his absence.
The Spanish manager said: "He was gutted. You can tell that he has not been injured because he was really, really emotional and really down. And we need to lift him up. It is a big part of his job. He will be fine but he is going to need a few days.
"He will immediately realise that he is so important in that dressing room. His energy level, his body language, and how he communicates with the rest of the team has to be really good because it is the only way at the moment he can help, so he better do that well."