The 20-year-old was the Gunners' standout performer once again in the 2021-22 season and won the club's Player of the Year award for his exploits on the right-hand side.
Saka amassed 11 goals and seven assists from 38 Premier League outings for Mikel Arteta's side, taking his total for the club to 23 strikes and 29 assists in 131 games in all tournaments.
The England international only has another two years left to run on his existing Emirates deal, though, and he has been linked with moves to Man City and Liverpool.
Saka is yet to play in the Champions League with his boyhood club, who missed out on fourth place to Tottenham Hotspur last term, and he is said to be determined to feature in Europe's top competition in the near future.
The Gunners have largely focused on incomings over the past few weeks, but new deals with Eddie Nketiah and Folarin Balogun have been agreed in the past couple of months.
Saka's contract is expected to be the next priority for Emirates chiefs, and according to the Daily Mail, Arsenal are now preparing to intensify discussions with the attacker.
The report adds that Arsenal and Saka have been locked in contract talks for a while, but there is confidence behind-the-scenes at the Emirates that the youngster can be convinced to commit his future to the club.
Saka is said to firmly believe in Arteta's project for the club, but repeated failure to qualify for the Champions League will only strengthen the Englishman's desire to leave North London.
Previous reports had stated that Saka would be willing to sign a new deal that included a release clause, which would see him secure a smooth exit from the club should he wish.
A move to Manchester is not expected to materialise for Saka this summer, as Arteta views the attacker as an integral part of his side's efforts to return to the Champions League.
City have already allowed Gabriel Jesus to join Saka at Arsenal this summer, while Raheem Sterling has moved to Chelsea for an initial £47.5m fee.
Pep Guardiola's side are said to view Saka as their ideal long-term replacement for Sterling, which has led to Arsenal stepping up contracts talks with the Hale End graduate.
However, the Premier League champions have agreed a new two-year extension with Riyad Mahrez, who is now tied to the Etihad outfit until the end of the 2024-25 season.
At the other end of the pitch, Arsenal are now said to be confident of sealing the signature of City left-back Oleksandr Zinchenko for a £35m fee after the Citizens decided to keep hold of Chelsea-linked Nathan Ake.