Wenger might also not exercise the option, however by indicating publicly his willingness to do so he may be using it as a strategy to put off United from signing him. We are stacked in midfield at the moment. Santi , Jack, Rosicky, Ramsey ,Arteta , Wenger's love-child Diaby and the emerging Zelalem ( We know how Wenger doesnt like to 'kill' his players ) There is no pressing need for a Cesc type player in there , in fact if we go and sign cover for Arteta thats another number to add to the midfield count.
Cesc may well be thinking the same.