The France international has found himself down the pecking order in recent months at Barcelona and there had been rumours that he could leave.
And with the Spanish champions trying to sign Ajax centre-half Matthijs de Ligt this summer, his playing time could be even less next season.
Gunners boss Unai Emery has reportedly identified Umtiti as his top defensive target and Barcelona are prepared to offload him.
Emery’s life has been made all the more difficult this summer after the club failed to qualify for next season’s Champions League.
A fifth place Premier League finish and defeat to Chelsea in the Europa League final means that the transfer budget this summer is set at around £40m.
This could be increased through player sales and with the likes of Laurent Koscielny and Shkodran Mustafi potentially on the way out, defensive reinforcements are a priority.
But Umtiti appears to have dismissed the growing transfer speculation surrounding him and confirmed he intends to stay at the Nou Camp.
He told RTL France: “I have a contract, I feel happy in Barcelona. I had a complicated season, but I will still be at Barcelona next season.”
Although Barcelona might be open to Umtiti leaving this summer, the 25-year-old is under contract at the club until 2023.
And it seems that the World Cup winner is determined to stay at the Nou Camp to fight for his place.
Meanwhile, Arsenal boss Emery said his side can still attract top players – despite having no Champions League football.
“I think we are a big team and I think Arsenal are a big name in the football world,” the Spaniard said. “A lot of players want to play here.
“I don’t know for the next year but the club is working and we will do our way.
“It is not the moment to speak about that. We need to analyse, speak to the players and the club.
“Our idea is to carry on with the same team and improve, and maybe some players need to leave to take a new way.
“We need the same idea and maybe add some new players to give us a situation to improve.”