Arsenal are ready to hand Carl Jenkinson a new contract before sending him out on loan with a number of clubs chasing his signature, sources have told ESPN FC.
The likes of West Ham, Sunderland and Southampton have all expressed an interest in signing the England under-21 international.
Sunderland have agreed a loan fee with Arsenal, but ESPN FC has been told the full-back is keeping his options open as he is aware there is interest from elsewhere.
Jenkinson enjoyed a successful spell on loan at West Ham last season and Hammers co-chairman David Gold recently confirmed they are keen on bringing the former Charlton man back to Upton Park.
"We know we need a right-back and will work tirelessly to bring in Carl," Gold told BBC Sport. "If that does not work out, we have other irons in the fire."
The 23-year-old found his path blocked into the Arsenal side by the arrivals of Mathieu Debuchy and Calum Chambers last summer, while the emergence of Hector Bellerin has further increased competition for places.
Despite finding himself down the pecking order at Arsenal, manager Arsene Wenger believes Jenkinson has a future at the club and feels he would be best served to go out loan next season to get regular first-team football.
Speaking last month, Wenger said: ""I met Carl this week to speak about his future. We will sit down together at the end of the season, but my target is to keep him here at the club."
The Arsenal boss now wants to tie the defender down to a new long-term deal before sanctioning another switch away from the Emirates Stadium.
Jenkinson's current contract is due to expire in 2018.