The France international impressed during the 2011-12 campaign as the Gunners finished third in the Premier League and says he has everything he needs at the club.
"I am happy here - I play for a big club, I am happy on the pitch and my family are happy here so I don't want to leave," Koscielny told Arsenal's official website.
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"This is the first club I have stayed at for more than two years. I want to stay because I have everything [I need] to be happy here.
"I like everyone who works at this club, I like the fans, I am very happy to play for the boss and my team-mates are nice, so my decision to stay was natural."
The 26-year old believes that his team-mates have learned from the mistakes that were made last season and hopes the Gunners can start the 2012-13 campaign in more positive fashion.
Arsenal stumbled out of the blocks this time last year and went on to suffer a humiliating 8-2 defeat to Manchester United during the opening weeks.
"If we start well, we can get into the race for the title," he claimed. "We saw last year that we had some difficulties at the start of the season, but afterwards you saw the real team.
"You need to work together, win together and help team-mates, and if [the start to] the season is good we can do something in the league."