The 24-year-old is set to be rewarded for his fine form this season with a significant pay rise that will reflect his status as one of the leading goalkeepers in the Premier League.
Ramsdale is said to earn around £60,000 a week and has two years left on his contract, which includes an option for Arsenal to extend the deal by a further year.
But Arsenal want to tie him down to a new long-term contract following his key role in their title push this season.
Only David De Gea has kept more clean sheets than Ramsdale in the Premier League this season and he made some vital saves in Sunday’s 2-0 win at Newcastle, which kept the Gunners on the coat-tails of leaders Manchester City. Ramsdale has also established himself as a regular in the England squad.
Arsenal are also in contract talks with Bukayo Saka and William Saliba, whose contracts are due to expire at the end of next season.
The club has an agreement in principle over a new deal with Saka and the 21-year-old is expected to sign a long-term contract.
Negotiations are not as advanced with Saliba, but manager Mikel Arteta said last week he was optimistic that a deal can be struck.
“Obviously, Edu and the board are on top of every negotiation regarding new contracts and now we are doing everything we possibly can to do that in the right moment at the right time,” said Arteta.
“The communication and the relationship is super. It is about timing, I think. Nothing else.”