The Frenchman's current deal expires at the end of the season, and he has been linked with big-spending Ligue 1 side Monaco.
However, the 64-year-old said he was committed to Arsenal, and would extend his 18-year stay in North London.
Wenger told Eurosport: "(The contract) is not totally done but it should be soon.
Premier League
Spurs miss chance to go top in West Ham defeat
02/03/2016 AT 09:02
"I am proud of my team's attitude because they have been through tough times. They have always been present even after disappointments and they have always had a positive attitude, and it is not that easy."
Wenger also dismissed suggestions his future depends on next Saturday's FA Cup final. Arsenal take on Hull City at Wembley hoping to end a nine-year trophy drought.
Their last silverware came in the same competition in 2005, when they beat Manchester United on penalties.
Wenger said: "When you have been in the same club for 18 years, and you say 'my final decision depends on only one simple match' it is a bit ridiculous, in my opinion."
Arsenal travel to Norwich on the final day of the Premier League season having already secured fourth place and Champions League football for the 17th consecutive season.
Watch Wenger's interview below:
Premier League
Majestic Mata free-kick gives Man Utd late win
02/03/2016 AT 19:00
Premier League
City's title hopes shredded as Liverpool exact cup revenge with crushing win
02/03/2016 AT 19:20