Wenger agrees new £12m deal at Arsenal

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Confirmation of the deal, which makes him the second-highest paid manager in the Premier League, behind Chelsea's Jose Mourinho, will be made public tomorrow morning.

Wenger's current contract expires next summer and a series of developments at Arsenal in recent months, including the sale of Thierry Henry and the departure of his close friend and club vicechairman David Dein, fuelled speculation about the Frenchman's future.

Dein's announcement last week that he had acquired serious financial backers and wanted a future involvement in the club will have played a part in Wenger's decision to stay.

But despite tempting offers from abroad, the manager has always given the impression that he wanted to continue his career in north London.

He was virtually unknown here when he joined Arsenal from Japan's Grampus Eight in September 1996 but in 11 years at Arsenal he has helped to transform the club, winning three league titles and moving to Emirates Stadiums.

The new deal he has will run until the summer of 2011 and such is his regard at Arsenal that most figures in the corridors of power are hoping he will agree to stay on in a consultation capacity when he retires.

In his time with Arsenal, Wenger has also won four FA Cups, reached the final of the Champions League and been voted Manager of the Year three times.

A studious coach with an ability to spot and develop young talent — he now has the benefit of a huge global scouting network — his coaching, diet and match preparation methods have been widely copied throughout the English game.

While Arsenal fans will be delighted at the news, his new long-term dealmeans that, as he will be nearly 62 when it expires, he's now unlikely ever to satisfy the wishes of those who hoped he would one day become manager of England.