The Spaniard's existing deal is scheduled to run out at the conclusion of the current campaign, although discussions over an extension have been underway for several months. It was reported earlier this month that negotiations had reached an advanced stage, and an agreement has now been concluded.
The length of Arteta's new deal has yet to be disclosed, but it is expected to keep him at the Emirates Stadium until at least his 10th year in charge. Arteta took over as Arsenal manager in December 2019.
The agreement will also provide the 44-year-old with a substantial increase in salary. Arteta currently receives 10 million pounds annually, while his existing package contains a further five million in potential bonuses.
Arteta had already made his desire to stay clear last week, telling supporters there was no reason for them to worry about his contractual situation. He also stressed how content he is at the club and praised the people around him.
"They [the fans] don't have to worry about any of that because I want to be here," Arteta said. "I'm extremely happy and I feel very grateful to work with the people I work with."
