The Gunners boss put pen to paper on a deal that keeps him with the Premier League outfit until 2025 and is targeting big things in the seasons to come.
Arteta said: “I’m excited, grateful and really, really happy today.
“When I spoke to Josh [Kroenke] he could see the club at the same point and he wanted to take the club the way I wanted to do it.
“So everything that he’s said, and that Stan [Kroenke] has said when I’ve been together with both of them, they’ve always delivered."
The coach continued: "We want to take the club to the next level and to compete really with the top teams. In order to do that, we have to be playing in the Champions League.
"We have to be able to evolve the team, improve our players, improve all departments, generate even more connection with our fans, improve the atmosphere at the Emirates, be able to recruit top, top talent and the best people for this club to drive this project to that level."
Arsenal's technical director Edu says the news is a big boost as the club bids to qualify for the Champions League for the first time in five years.
He said: "I think the timing is perfect. I really believe the message will be a big lift to everyone. To the fans, to the club, to the players, to Mikel.
"It’s important to show everyone where we want to go as a club. We are going to face a big summer again and it’s important to have our manager here."