Nacho Monreal has committed his future to Arsenal by agreeing a new contract, Football Insider sources understand.

The Spain international will be handed a pay rise as part of the new agreement. It will replace his current £60,000-a-week agreement, which began in January 2013 and runs until 2017.

Football Insider revealed earlier this month that Arsenal were set to offer Monreal a new contract to ward off interest from Athletic Bilbao.

The Spanish club were interested in paying around £7million to prise the 29-year-old from Emirates Stadium.

But Arsene Wenger does not want to lose Monreal and sanctioned a new contract for the £8million signing from Malaga.

It is understood that terms have now been agreed and the player will shortly sign an extension.

Monreal has begun the new campaign as Arsenal’s first-choice left-back after displacing Kieran Gibbs in the second half of last season.

The Spaniard was a key figure in the team’s renaissance which ended with an FA Cup triumph and a third-placed Premier League finish.

He is regarded by the Arsenal coaching staff as a more reliable defender than Gibbs and has been given the nod over his English rival to start all four of the Gunners’ Premier League matches this season.