Arsenal technical director Edu has provided a positive update on ongoing talks with Bukayo Saka over a new contract.
The 20-year-old is due to become a free agent in the summer of 2024 and is yet to extend his stay with his boyhood club, despite lengthy discussions.
Mikel Arteta and Edu are now understood to have made a new deal for Saka a priority after bringing in five new players earlier in the summer transfer window.
Liverpool and Manchester City are rumoured to be keeping a close eye on developments surrounding Saka's future, with both sides able to offer the England international Champions League football.
Arsenal's failure to qualify for Europe's elite tournament has led to suggestions that the Gunners could be forced to part ways with Saka, but Edu has insisted that talks with the attacker are going well.
"Good, very good. Everybody is happy. It's normal. We're going to sit and put all the expectations in the right place," Edu told The Athletic.
"Our expectations and his, his family and his agent's expectations, and put everything together. The main thing is how he feels, how he feels comfortable with us. He's happy, we're happy, so it's just: sit down and find a solution."
There have been suggestions that Saka could push for a release clause to be inserted in any new deal, which would present him with an exit route if Arsenal continued to fail in their attempts to return to the Champions League.
The Hale End graduate ended the 2021-22 season as Arsenal's Player of the Year after starring with 12 goals and seven assists in 43 appearances across all competitions.
Eleven of Saka's goals came in the Premier League, which took him to 23 goals and 29 assists in 131 outings for the North London club since rising through the club's youth ranks.
Edu was also quizzed on Arsenal's pursuit of Raphinha, who was on the radar of several Premier League clubs before securing his dream move to Barcelona.
The Arsenal chief admitted that he discussed the Brazilian's situation with agent and close friend Deco, but Raphinha only had his heart set on a transfer to Camp Nou.
"Raphinha was everywhere. It's fair that we had a conversation with Deco because he is his agent and I have a good relationship with him, we are friends," Edu said in a separate interview with Sky Sports News.
"I just said to Deco 'Can you explain to me the situation of Raphinha?' and he was clear. He said 'Edu, we have a good relationship, I am not going to lie to you, his idea is to go to Barcelona. His dream is to go to Barcelona and we have been talking to Barcelona since a long time ago.'
"Okay, thank you very much. If something happens, just let me know because I can explore and understand the situation. If not, no problem."
Arsenal are still being tipped to sign a new winger this summer and have supposedly reignited their interest in PSV Eindhoven and Netherlands attacker Cody Gakpo.
