Arsenal are planning to hand Serge Gnabry a new contract, with Arsene Wenger insisting the forward is part of his long-term plans.

The 21-year-old has impressed at the Olympic Games where he has helped Germany to the gold medal match and they face hosts Brazil in Saturday's final.

Gnabry - who is out of contract at the end of the season - has scored six goals in five appearances at the Rio Games and Hertha Berlin have expressed interest in taking him to the Bundesliga, but Wenger wants to extend his stay at the Emirates Stadium.

"I want to keep Serge Gnabry and extend his contract," Wenger said at his pre-match press conference ahead of Arsenal's match away to Premier League champions Leicester City.

"I think we stood by him. He went to West Brom on loan, didn't play, and we had to rebuild his confidence. 

"I allowed him to go to the Olympics to help Germany. I think he's here now for a long time."

Saturday's game will see Arsenal come up against Leicester's Jamie Vardy, who rejected a move to the Gunners ahead of the campaign.

Asked if Wenger had been given a reason by the England international, he replied: "Erm, no - you have to respect people's decisions. That is part of it. 

"In every transfer market you have one or two with decisions to make and you have to respect them.

"You should ask Vardy that question. I cannot answer for him."