With the Brazilian receiving a big-money contract at the Emirates Stadium, it has been suggested that the Gunners will opt against triggering a 12-month extension to his deal.
A return to former club Benfica has emerged as a possibility after Luiz revealed that he would like to spend a second spell with the Portuguese giants.
However, The Telegraph claims that Arsenal will give the 33-year-old the chance to continue his career in the Premier League, providing that he takes a pay cut.
Rather than hand the centre-back wages in the region of £120,000 per week, club officials allegedly prefer to hand Luiz a contract based on a number of clauses being triggered during 2020-21.
The former Chelsea man has made 32 starts during his first season with the North Londoners. body check tags ::