Iwobi’s salary has been doubled by new Arsenal boss, Unai Emery, who has assured the 22-year-old that he has a future at the Emirates.
The Sun reports that Gunners academy product snubbed interest from Lazio and will sign the new five-year contract worth around £70,000-a-week when the squad return from their pre-season trip to the Far East after their game against Paris Saint-Germain on Saturday.
Talks over a new deal began last December, despite the Nigerian international penning a five-year deal in October 2016.
Arsenal wanted a new deal agreed before the World Cup, however, talks went on the backburner while the club looked to replace Arsene Wenger.
Talks with new boss Unai Emery have been positive and Iwobi has been assured he will be part of the Spanish coach’s new regime in North London.
And the bumper new deal more than doubling his money is a sign of Iwobi’s status at the Emirates and how highly Emery rates the attacking midfielder.
Iwobi made his debut in the defeat to Sheffield Wednesday in League Cup in 2015 and scored his first goal at Everton five months later.
He went on to make 24 appearances that season and made his international bow for Nigeria.
Last season, Iwobi made 40 appearances in all competitions for Arsenal and scored three goals.
The Gunners face Atletico Madrid in Singapore today followed by PSG on Saturday in the same stadium.
Chelsea are up next at the Aviva Stadium in Dublin on August 1, before a trip to the Friends Arena in Sweden to play Lazio three days later.
Emery will get his first taste of Premier League action when he goes head-to-head with Pep Guardiola and Manchester City on August 12.