The 29-year-old's current deal expires in 2017, but an agreement has been reached to extend it until 2019.
Arsenal has reached an agreement with Nacho Monreal to extend the left back’s contract until 2019, Goal UK reports.
Negotiations over the new deal began in October and confirmation is expected to be announced within the next few days. The 29-year-old’s contract had been due to expire in 2017.
Monreal, who joined Arsenal in January 2013, had been linked with a move to Athletic Bilbao last summer.
Goal understands that Bilbao remains in the market for Monreal and retains a small hope of trying to lure the defender away from Arsenal at the end of the season.