The Brazilian joined Arsenal from Chelsea last summer for £8m on a one-year contract, with an option for a further year.
Arsenal are understood to be seeking a reduced deal for next season, due to the financial impact of the coronavirus outbreak.
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“He’s very happy at Arsenal,” Joorabchian told Sky Sports. “He has an extremely good relationship with both the coach and the sporting director. He has good relationships all throughout the club, right up to the owner. He respects everybody.
“Arsenal had an option, which expired. We also had a pandemic [coronavirus]. So the option expired in the middle of the pandemic. We are all very aware of that situation and we are all trying, very slowly, to get back to this ‘new normal’.
“These contract situations, these renewals, if he stays or if he goes… will all sort themselves out when we get back to some kind of ‘new normal’.
“David will sit down with Arsenal before the season begins, have his conversations and they will both decide if he will stay or not.
“That will come before the season starts. The chances are very high [of Luiz being at Arsenal next season]. There is no desire to leave.”
Luiz recently admitted he’d like to end his career at Benfica. However, Joorabchian insisted that the 33-year-old is determined to remain at Arsenal next season and refuted the idea that talks had been held with the Portuguese club.