The Arsenal manager's current deal expires at the of the month and has constantly faced questions over his Emirates future.
But the club will announce after a board meeting that the Frenchman has signed a new contract until he is approaching his 70th birthday.
Wenger has been in charge of the Gunners since 1996 but hasn’t won a Premier League title since 2004.
He will however have to accept some changes to the way that he works, with the club looking to appoint a sporting director.
Arsene Wenger will finally announce he will sign a two-year contract at Arsenal
Arsenal fans have been split in their opinion on Arsene Wenger's contract situation
Of course I want him to stay at club
Aaron Ramsey on Arsene Wenger
The aim is to identify potential transfer targets and take some of the burden off Wenger, who has had a free role since he joined the club.
Aaron Ramsey, who bagged the winner of rArsenal in their FA Cup win over Chelsea today, threw his support behind his current boss to put pen to paper on a new deal.
"Of course I want him to stay at club," Ramsey said.
Arsene Wenger lifts FA Cup as Arsenal players celebrate Sat, May 27, 2017
Get Quotes on Home Insurance
Arsene Wenger was the centre of attention during the wild Arsenal celebrations
Play slideshow Getty Images 1 of 11
Arsenal celebrate winning the FA Cup against Chelsea
"He deserves this. We changed the formation and had a lot of success. Fair play to him, he changed the system. Hopefully, he'll be there next season."
Wenger added: "It would be ridiculous that 20 years depends on one game. We’ll know more next week.
"It would be ridiculous that 20 years depends on one game. We’ll know more next week.
"There’s no perfect way. I just want to do well for the club. It’s down to the board members. It’s up to the board and me. It’s not about popularity it’s about competence."