Arsenal manager, Unai Emery, is ready to give Alex Iwobi a chance to prove himself at the club and will not sanction a sale this summer.
Instead, the Super Eagles star will be handed a new long-term contract with the Gunners, according to the UK Mirror.
It is believed that Iwobi has already agreed to terms of the deal, as talks have been ongoing since the end of last season.
His previous deal, signed in 2015, ran until 2020.
But the 22-year-old is set to extend his stay at Arsenal until 2022 with the new contract.
Lazio were believed to be keen on taking Iwobi to Serie A and willing to pay £22.3m for his services.
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