It's understood the Gunners manager has penned a deal to 2027.
Arsenal announced the agreement this afternoon, though the length of the contract is undisclosed.
The club's co-chairman, Josh Kroenke, said: “We’re delighted to have extended Mikel’s contract.
“Mikel is a dynamic and passionate manager, who is relentless in the pursuit of excellence. He has a deep understanding of Arsenal’s values, and since joining us as Head Coach in December 2019, he has taken the team to another level in an Arsenal way.
“There is a great collective team spirit at the club, and with the strong relationships we hold between us and belief in what we do, we look forward with excitement and confidence, as we continue our aim – to win together.”
Sporting director Edu added: “We are really happy that Mikel has signed a new long-term contract. It’s a very positive and proud moment for everyone at the club and an important part of what we’re all working towards.
“Mikel has shown his qualities since the very first day he joined us, not only as a football manager, but as a person with wonderful values. We have a strong belief in what we are doing and what we want to achieve together. Mikel’s new contract gives us stability and clear direction as we aim for new heights.”
Arteta also said: “I feel extremely proud, very excited and am looking forward to what is coming next. I’m proud to be where I am and have the relationships that I have with everyone at the club.
“I feel extremely lucky to work every single day with good people and the ambition we have here. I feel very inspired, I feel challenged, I feel supported and I want to do much more than what we’ve already done together.
“Together with the players and everyone at the club, we are looking forward to the coming years, with our supporters, who have emotionally transformed the club and the team. Our supporters have transformed individuals and we are different now. You can tell that we are different and for me, that is down to them. We look forward to continuing the journey together.”