Leicester City will reportedly offer Brendan Rodgers a new contract amid interest from Arsenal.
The former Liverpool boss, who moved to the King Power in February, has guided the Foxes to third place in the Premier League table this term.
According to Transfer Window podcast host Ian McGarry, Leicester will offer Rodgers a bumper deal that would reward the manager with a significant financial bonus - around £5m - if he turns down the Arsenal job.
Under his current deal, Arsenal would have to shell out a compensation fee of £14m in order to secure the services of Rodgers.
Reports claim that members of the Arsenal hierarchy privately accept that they will not be able to appoint Rodgers at this moment in time.