Thierry Henry  is likely to sign a contract extension, according to Arsenal managing director Keith Edelman.

The 28-year-old's deal expires in mid-2007 and Edelman believes Champions League success would persuade the club captain to stay.

"That would help," Edelman told BBC Radio.

"It is over 50% probability he will stay."

"We've got a new stadium to go to and we've got a great group of youngsters who show we're a team for the future. I think he will stay."

Henry has been rumoured to be making a move to Spain - to either Barcelona or Real Madrid.

Speculation of Henry's departure has increased as Arsenal have had their worst league season under Arsene Wenger, but have hit back in recent weeks and are now favourites to finish fourth and claim a qualifying spot for next season's Champions League.

The Gunners' incosistent Premier League form has been overshadowed by their run into the Champions League quarter-finals - where they hold a 2-0 lead over Juventus going into the second leg.

"When he (Henry) sits down in the cold light of day we're a team for the future," Edelman added.

"I think Arsene has developed another great team and you're seeing it develop in front of your eyes. When you watch that and play with that it's very exciting."