The 50-year-old was Arsenal's top choice to replace Arsene Wenger, who is leaving the Gunners after 22 years in charge, with the club hierarchy keen for the successor to be someone who "unites" and "excites" a fractured fanbase.
Allegri was said to be interested in what Arsenal had to offer but, having steered Juve to a seventh consecutive Serie A title, appears to have made up his mind to stay in Italy.
"There is a very high percentage, I've never had any doubts," he said when asked if he was staying. "Next week, I'll meet with the club as we start to make the team competitive again just like every year. I am happy at Juventus and I have an excellent relationship with the club."
The Italian, who has been with Juve since 2014, had already said last weekend - after his side sealed the title: "If they don't fire me, then I think I'm staying at Juventus next year, too."
It is understood he believes the team left behind by Wenger needs significant work to compete at the top again, and with Arsenal likely to only have a transfer budget of around £60m that presents something of a stumbling block.
Allegri is also said to have concerns over the new managerial structure, since he wants more control than he currently has at Juventus, but the club are actually looking to dilute the power of the manager rather hand over more influence to him.
Having already implemented a hugely modern staff structure, with multiple appointments including the influential Sven Mislintat, CEO Ivan Gazidis thereby wants Wenger's successor to be more of a head coach than a manager.
This is another reason why Arteta appears to fit the requirements, with his history with the club only enhancing his suitability for the role.
It is understood that the Manchester City assistant greatly wants the job, to the point he has already begun planning his backroom staff with former teammate Santi Cazorla one of the names in the frame for a role behind-the-scenes.