The UK Mirror reports that the discussions are expected to take place over the summer, with Aubameyang out of contract in two years time.
The Gabon international is likely to receive a raise in pay after a season in which he shared the Premier League Golden Boot, after scoring 22 goals.
He is currently thought to be on around £190,000-a-week.
Reports have it that Guangzhou Evergrande and Shanghai SIPG have both made moves for the player and have offered an eye-watering £300,000-a-week, in order to try to tempt the 29-year-old to the Chinese Super League.
Meanwhile, the Gunners are also due for talks for Aubameyang’s strike partner Alexandre Lacazette.