According to Fabrizio Romano, the two parties began negotiations back in March, and the new deal is set to be finalized in the coming days.
The highly talented attacking midfielder has established himself as a first-team player for Mikel Arteta this past season, and his new deal will keep him at the club until the summer of 2026.
Smith-Rowe is regarded as one of the finest young talents in England right now, and the decision to tie him down to a new long term contract is certainly a wise move from the Gunners.
The 20-year-old made quite an impressive impact on the Arsenal first-team this past season, and he chipped in with four goals and seven assists for the Gunners.
Arsenal were struggling for creativity during the first half of the season, but Emile Smith-Rowe certainly made a big difference in the final third for the London side.
The youngster is likely to improve with experience and coaching, and there is no doubt that he could develop into a top-class player for Arsenal in the coming seasons.
The highly-rated attacking midfielder can play in the wide areas as well, and his versatility will be a major asset for Arteta going forward.
The midfielder needs regular game time in order to continue his development, and it will be interesting to see if he can establish himself as a key starter for the Londoners next season.