Real Madrid and Barcelona have confirmed their interest in the highly rated Spaniard.
“I do not have any advice to give Cesc, but the ideal situation for him would be to carry on with Arsenal in order to keep on improving,” Pires told Setanta Sports.
“The main reason for him to stay is that he knows he is going to be played week in, week out.
“I am not saying that he would not play if he was a Real Madrid or a Barcelona player, but it is more difficult to be part of their starting line-up.
“When you come back home, to your country, people have huge expectations. They demand a lot from you and you are put under a lot of pressure.
“At the present time, he is in a good environment and he works under a great manager who totally relies on him.
“To my mind, he should stay one year more at Arsenal.”