Ramsdale's current deal expires in the summer of 2026, but the Gunners are set to award the England international for an impressive season.
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The 24-year-old is one of a number of Mikel Arteta's stars to excel in an unexpected Premier League title challenge, with the club looking to secure their futures.
Gabriel Martinelli has already seen his deal at the Emirates extended, while there are talks ongoing for Bukayo Saka and William Saliba.
Ramsdale is now also looking to extend his original five-year deal.
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Signed from Sheffield United in 2021 for a fee worth £30million, the Stoke-on-Trent born shot stopper quickly dislodged Bernd Leno in his debut season, and has made the position his own this term.
Helping Arsenal to challenge for the title, Ramsdale has put in a number of key performances, most recently away at Anfield where he made multiple incredible saves in a 2-2 draw.
That was one of Ramsdale's 10 away clean sheets this season, a feat he has also achieved in two previous campaigns. Only Petr Cech and Ederson Moraes can match such a record.
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He most recently kept out Newcastle at St. James' Park, helping Arsenal keep their title hopes alive.
Along with his club exploits, Ramsdale is a regular in Gareth Southgate's England squads, making three senior appearances and travelling to the 2022 World Cup.