The Spanish coach has put pen to paper on a new three-year deal that will keep him with The Gunners until 2027 as his previous terms were due to expire at the end of this season.
Arteta 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.
"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."
Arteta took over as Arsenal boss in 2019 and has overseen a dramatic improvement in the past two seasons that has seen them finish as runners-up in the Premier League to Manchester City in both campaigns.
Arsenal co-chair Josh Kroenke said of the manager's new contract: "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."