According to The Sun, the Gunners are ready to hand Arteta a new contract in the summer as they are happy with work he's done so far and project he is building at the Emirates.
His current deal at the Emirates expires next summer and he is some way off the top-flight's top earning bosses.
He is believed to be on around £5million per year, nearly a quarter of what Pep Guardiola takes home at Manchester City.
However, his new three-year deal will see him earn £25m, which would represent a pay hike of around 60 per cent.
But he was in no mood to address those reports when he faced the media on Wednesday.
"A team that people enjoy watching, that they can identify with and that can transmit what we want football-wise and as an organisation."
Should he get this new deal, where will Arteta rank in terms of the other highest paid managers in the league?
Guardiola currently earns the most on a whopping £19million salary.
He is, however, proving his worth, having won three Premier League titles since joining the club in 2016.
The Spaniard also steered City to four Carabao Cup trophies and an FA Cup in that time.
Liverpool boss Jurgen Klopp takes second spot on the list.
He's transformed the Reds into one of the world's best teams and won the Champions League and Premier League in seven years at Anfield.
Arteta currently ranks in mid-table on the list on his current £5million earnings, but his new contract will see him shoot up to number five, behind Tottenham's Antonio Conte and Leicester's Brendan Rodgers who are the third and fourth highest earners respectively.
Arsenal have undoubtedly made progress under Arteta, but they are still some way behind pace-setters Manchester City, Liverpool and Chelsea.
His side are sixth in the league, four points off Manchester United in fourth but with two matches in hand.
Arsenal were 1-0 winners at Molineux when the sides met in the reverse fixture just a fortnight ago - this second meeting coming at the Emirates Stadium having initially been postponed during the hectic festive schedule.
Wolves have won the other five of their previous six Premier League games, including victories over Tottenham and Leicester in the past week, and Arteta insists they have to be considered genuine challengers alongside the Gunners for a place in the top four.
"They look like it," he said. "The way they are playing and the results they are getting, the consistency they are showing. For sure. You look at the last two games as well and how they played against those teams, they are going to be up there.
"We are where we are and I'm happy that we are in this position and we want to make the most out of it and again that can be the aim and that should be the goal and the objective but the focus has to be today."