Denilson, 24, has come to the fore this season in Brazil, having initially struggled to adapt to the change in pace and refereeing standards.
Denilson has now agreed terms with São Paulo concerning a longer stay and the Brazilian side will now approach Arsenal about keeping the midfielder until June 2013.
“Our conversation was that we have every interest in continuing as we are," said João Paulo de Jesus Lopes, vice-president of São Paulo. “We want to renew at the end of the contract and he has said he wants too.
“He [Denilson] will speak with his representatives who will contact the English club. There is no rush because he is here until the middle of the year."
