I think from Arsenal's point of view we need to look at the pros and cons of offering him big money. Will work out cheaper than buying a replacement but sets a bad precedent that I think the club will want to avoid as others will try to run their contracts down.
Considering he would be going on a free I reckon his deal would work out at over over £100k p/w elsewhere, he'll be in line for a nice big signing on fee.....