Arsenal are confident that Arsene Wenger will sign a new contract at Highbury amid speculation that Real Madrid are keen to hire the Frenchman as a replacement for Jose Antonio Camacho.

Wenger’s current deal expires at the end of the season, andArsenal are keen to retain his services.

Inevitably, the former Monaco coach has been linked with the vacancy at the Bernabeu, but Arsenal chairman Peter Hill-Wood is confident Wenger will stay.

“We’ve had a handful of meetings with his people about a new contract,” revealed Hill-Wood.

“As far as I’m aware everything is proceeding positively from his point of view and ours.

“He said he will decide in October and it’s September now and I’m very hopeful we’ll come to an agreement with him next month.

“I believe he’s very happy at Arsenal. He doesn’t have to put up with any interference and we don’t buy players he doesn’t know about.

“He’s left alone and he gets a reasonable salary.

“If I was a betting man I’d put money on him staying with us and not going to Real Madrid.”