Arsenal will reward Mikel Arteta for ending Arsenal’s 22-year wait to be champions by offering him a lucrative new contract that will cement the Spaniard’s status as one of the best-paid managers in the world. The club are also well advanced with plans to strengthen his squad.

Talks over extending Arteta’s deal beyond next summer were put on hold while Arsenal battled it out with Manchester City in the Premier League, although insiders insist there was an expectation he would have stayed even if the season had ended without a trophy. The 44-year-old has become the second-youngest manager to win the Premier League, after José Mourinho with Chelsea in 2004, and matched Kenny Dalglish’s achievement with Liverpool in 1990 in making a team top-flight champions his first senior management job.

Arteta has transformed Arsenal since he was appointed in December 2019 and it is understood his new deal is likely to reflect his achievements.

His contract is believed to be worth about £10m a season plus a £5m bonus for reaching the Champions League but Arteta will be offered a large salary increase that some sources have predicted could come close to matching the Atlético Madrid head coach Diego Simeone’s wage. Simeone is thought to be the world’s best-paid manager, earning a reported €30m (£26m) a year. Pep Guardiola is paid a reported £20m a year by Manchester City. Arteta will become the longest-serving manager in England’s top four divisions when Guardiola steps down after Sunday’s final Premier League game.

Arteta, the eighth manager to lead Arsenal to the title and first since Arsène Wenger in 2004, will resume talks after next Saturday’s Champions League final against Paris Saint-Germain.

Arteta has been heavily involved in recruitment plans with the sporting director, Andrea Berta. The co-chairs, Stan and Josh Kroenke, promised in their programme for Monday’s win over Burnley that “there will be no standing still when the season ends”. It is understood there is unlikely to be the same outlay on players as the £250m Arsenal spent last summer, but funds are in place to make a marquee signing to rival the purchase of Declan Rice for a then-British record £105m in 2023.

It is understood that Eli Junior Kroupi, the Bournemouth striker whose goal against City helped Arsenal seal the title on Tuesday, is a target, although it is thought his club could value the 19-year-old at about £80m. He broke the league record held by Robbie Fowler and Robbie Keane for most goals scored by a teenager in his debut season with his 13th on Tuesday and joined up with the agent Moussa Sissoko – whose client include the Ballon d’Or winner Ousmane Dembélé – this year in anticipation of a summer move. Kroupi, who has also been scouted by Real Madrid and Chelsea, is regarded as an option for the left of Arsenal’s attack as well as someone who could compete with Kai Havertz and Viktor Gyökeres for a central role.

Arteta has made a forward his priority and there is strong interest in Julián Alvarez, although it remains unclear how much Atlético would demand for the Argentina international. PSG’s Khvicha Kvaratskhelia would be the dream signing but PSG are not expected to entertain offers for the Georgian. Other longstanding targets include Kvaratskhelia’s PSG teammate Bradley Barcola, Nico Williams of Athletic Bilbao and Newcastle’s Anthony Gordon, a target for Bayern Munich. Gabriel Martinelli would be allowed to depart if a suitable offer arrived.

Interest in Newcastle’s Sandro Tonali could be revived but Myles Lewis-Skelly’s performances as a midfielder may persuade Arteta to prioritise elsewhere. Ethan Nwaneri’s future looks less secure. He spent the second half of the season on loan at Marseille after signing a new five year contract in August and is wanted by clubs including Borussia Dortmund.

There could be a handful of other departures, with Christian Nørgaard linked with Ajax after playing 56 minutes in the Premier League since his move from Brentford last year and Gabriel Jesus – among the club’s top earners and with a year of his £250,000-a-week contract remaining – surplus to requirements.

Arsenal are in talks with representatives of Jeremy Monga, the 16-year-old Leicester winger who this season became the youngest goalscorer in Championship history, over a potential move that would involve a compensation fee being paid for the England Under-19 international. They have this year signed the defender Jaden Dixon from Stoke and the Scottish striker Evan Mooney to boost their youth ranks.