The Frenchman has been offered £75,000 (S$230,600) a week - nearly £11 million in a three-year deal - reported The Sun yesterday.

He will also get £30 million for summer signings.

The Gunners are even ready to include a clause, allowing Wenger to leave next year if he wants to.

The club's directors are reportedly in a panic, following Thierry Henry's £16 million exit to Barcelona.

The striker left for the Spanish giants because Wenger could not assure Henry that he would stay beyond next year.

The manager's current £50,000-a-week contract expires next summer, and he has resisted all the club's efforts to extend his stay.

But apparently Wenger is ready to relent, as he knows the speculation is threatening to destabilise the club.

He has been offered a £3.5m-a-year package and given the green light for a major spending spree.

The £21.5 million raised from the sales of Henry, Fabrice Muamba and Jeremie Aliadiere will be in the pot, plus £8.5 million from the new TV deal.

Yet, despite the manager's inclination to commit himself, he is still not convinced Arsenal have the ability to challenge for major honours.

That is why he wants a clause letting him go if they do not live up to his expectations next season.

He finally broke his silence on Henry's departure on Monday, saying: 'He goes with my blessing.

'Thierry has been tremendous for us since he arrived and has become an Arsenal legend.'

Henry, who was officially unveiled as a Barcelona player on Monday, told Sportinglife.com: 'It is important for the club that he stays. If he also goes, it is going to be pretty difficult for the club.'