Adrian Clarke expects Arsene Wenger to sign a new Arsenal contract
Wenger's current deal at Arsenal is up in the summer and a decision on his future is expected after a board meeting tomorrow.
Juventus boss Massimiliano Allegri had been one of the favourites to replace Wenger at the Emirates but he has said he will stay with the Old Lady.
Former Arsenal midfielder Clarke believes it's too late to find a replacement if Wenger was to make his exit now.
"I can't see how he won't sign (a contract) one now," he said on talkSPORT.
"The bottom line is if they were going to make a change, I would have expected them to have lined up a successor by now.
"It's a little bit late, you see Allegri who was in pole position as the No.1 target allegedly, he's committed his future to Juventus.
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Arsene Wenger's current Arsenal contract is up this summer
I can't see how Arsene Wenger won't sign a contract now
Adrian Clarke on Arsenal boss Arsene Wenger
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"Arsene Wenger's in a great position now, he can just plonk the FA Cup on the table and say 'this is the deal I want'."
"A lot of these guys, why would they want to leave?" he said.
"They're happy where they are. Atletico Madrid's a massive club, Juventus as well."
Arsenal missed out on Champions League qualification after finishing outside the top four and will play Europa League football next season.
Adrian Clarke and Ray Parlour do not think time is up for Arsene Wenger at Arsenal just yet
Clarke expects Wenger will want to win the competition as well as giving his whole squad some game time.
He added: "I think Arsene Wenger will use it to mix his squad up and give them a game in the group stage.
"If they can't get out of the group stage in the Europa League there is something wrong. Then in the knockout stage go big."
Parlour reckons Arsenal could see the absence of Champions League football as similar to Chelsea this season, who went on to win the Premier League without playing in Europe's elite club competition.
"The big question for me is how seriously they take the Europa League next year, I don't know how seriously they will take it," he said.
Arsene Wenger led Arsenal to a record 13th FA Cup triumph against Chelsea on Saturday
"Maybe they're going to go in and say 'right this might be an opportunity (in the league), look at Chelsea last year'."
Arsenal beat Chelsea 2-1 in the FA Cup final on Saturday and put in one of their best performances of the season.
But Clarke still believes some high-profile additions need to be made in the transfer window.
"There will be a bit of a shake-up I imagine, big name signings need to be made," he said.
"Even though that was a wonderful performance (against Chelsea) and it showed the potential, I think that Arsenal can upgrade the quality of the first-team."