The Costan Rican international signed for the Gunners from Deportivo Saprissa in 2011, but is yet to receive a work permit allowing him to play at the Emirates Stadium.
To get around the red tape issues, Arsenal sent him on loan to Real Betis for the season, and the La Liga club have been so impressed by the forward that they're eager to keep him for another year.
Real Betis coach Pepe Mel, speaking to Estadio Deportivo, said: "We are advancing negotiations to reach an agreement.
"This wont be easy, but we want to speak in London with clarity and to agree a new loan. I believe that it will be positive for all parties."
Campbell joined Betis last summer after spending several months with French club Lorient during last year's campaign.
He's scored two goals for the Spanish club, and recently said how much he's enjoying life in La Liga.
Arsenal and Betis are thought to have scheduled talks for next month. The Gunners have Lukas Podolski, Olivier Giroud, Gervinho and Theo Walcott as their main first-team strikers this season, but it remains to be seen whether Arsene Wenger opts to bring Campbell back to compete for a starting spot, or decides his development would be best served by another term in Spain.
The 20-year-old is a full Costa Rica international, and has scored seven goals in 20 appearances for the national team.