The Daily Star is reporting that the north London side are ready to hand the midfielder a much-improved contract in order to try and keep the 24-year-old at the club.
The same report states that Chelsea have made Oxlade-Chamberlain one of their “top” transfer targets this summer as Antonio Conte looks to bolster his midfield options.
The story also says that the player is “tempted” by a move to Chelsea, with his current Arsenal contract set to expires at the end of next season.
However, the article says that Arsenal are now “optimistic” that Oxlade-Chamberlain will commit his future and accept the improved terms on offer before his contract runs out.
Oxlade-Chamberlain could not prevent Arsenal from slipping to a disappointing 1-0 loss to Stoke City in the Premier League last weekend as the Gunners lost their second game of the season.
The Gunners are now preparing to take on Liverpool in their third clash at Anfield on Sunday afternoon.
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