The French full-back has been on the verge of a move away from the Gunners at the end of the season for some time, with the 31-year-old set to be out of contract this summer.
Despite the club’s willingness to keep him, a Bosman switch to Manchester City or Paris Saint-German has been mooted, yet now he is looking likely to stay.
It is understood that positive discussions have taken place between the parties, with Arsenal having added some incentives to the £75,000-per-week contract previously offered to the player to bring it more in line with his demands.
Sagna is said to be happy to stay, with his family settled in the London area.
Although the Emirates Stadium outfit have been linked with a series of replacements for their man in recent months, keeping the experienced full-back has always been their preferred outcome.
However, as it stands he could still pen a pre-contract agreement with another side.