The Frenchman's future at the Emirates Stadium has been the subject of speculation this summer, amid suggestions he might choose not to extend his current contract which expires at the end of the forthcoming campaign.

But Hill-Wood remains confident Wenger will sign up after positive recent talks.

"I very much hope he will (sign). It's very important," he told www.arsenal.com.

"He's done a marvellous job for the last 10 years or so. He looks pretty fit to me and I think he enjoys himself still.

"He's got a good job and I'm hoping he'll stay with us.

"We had a fairly lengthy conversation recently and that went very well.

"Hopefully, in the not too distant future we'll have something positive to say about it. I'm confident he'll stay."

Hill-Wood has also dismissed talk of a summer of discontent at Arsenal.

Wenger's side have been stung by the recent departure of captain and lynchpin Thierry Henry for Barcelona, while the futures of Wenger and midfielder Cesc Fabregas have also been the subject of persistent speculation, although the Spaniard committed his future to the club over the weekend.

With Croatia's Brazilian-born striker Eduardo da Silva, full-back Bacary Sagna and goalkeeper Lukasz Fabianski the only new arrivals so far, Arsenal's ability to keep pace with their big-spending rivals has been called into question.

But far from seeking to lower expectations ahead of what many have predicted will be a difficult season, Hill-Wood insists he has full confidence in Wenger's men to mount a genuine title challenge.

"I believe we've never been in a better position," said Hill-Wood, chairman of the club since 1982. "I think the team is absolutely first class.

"We had some very good results last year against the likes of Manchester United and Chelsea, the sides we didn't overhaul in the league but played pretty well against when we faced them.

"It's a young side still but they're a year older now so they're going to be that much better."

He added: "If you tune in to the media, you would believe that it's been a difficult summer but I think people have not really looked behind what's happened.

"I'm very relaxed. I think we've got a very good squad and we've added a few players, most of them not names people have heard of before.

"But that's very much Arsène Wenger's style. People hadn't really heard of Thierry Henry, Patrick Vieira or Cesc Fabregas before they arrived."

One of the factors cited by Arsenal's detractors for their lack of competitiveness in the transfer market has been last summer's relocation to the Emirates.

But Hill-Wood has rubbished suggestions that the Gunners are being hampered by the financial burden of their new home.

"It's actually the reverse," he insisted. "Relocating to the Emirates has increased the income of the club.

"The stadium has not held Arsenal back at all in terms of bringing in players.

"It's actually given us the opportunity to compete with the biggest clubs in the world.

"If we had stayed at Highbury that would have limited our resources and over the long term affected our ability to financially compete with the top sides."

One man who will definitely not form part of Arsenal's future is Julio Baptista, after Wenger confirmed the striker will be heading back to Real Madrid after a mediocre season on loan.

Jose Antonio Reyes, who went to Madrid as part of the Baptista deal, will also be allowed to leave, but Wenger insists he expects winger Freddie Ljungberg to stay despite rumours of a move.

"I expect him to be here [at the start of the campaign] because he has not left yet," said Wenger.

"That is 90% yes. The Freddie case is a bit different than it was for Thierry Henry, if he had wanted to go we would have let him go. But I am happy that he stays."