The Spain international right-back is honoured to have inked a new deal with the Liga champions that will keep him at the club for an additional two seasons
The 29-year-old is a product of the Madrid youth academy, but left the club for Deportivo La Coruna in the summer of 2006 after failing to secure regular first-team action in the Spanish capital.
However, Arbeloa returned to Los Blancos in 2009 after a two-and-a-half-year spell with Liverpool, and has since developed into an important member of Jose Mourinho's team.
"I am very happy with my new contract. For me, it's an honour to be part of Real Madrid," Arbeloa commented on his extension.
"Signing a two-year extension to my existing deal is a source of joy for me. I am delighted with the club's faith in me, and I am looking forward to continue playing here."
The right-back has made 123 official appearances for Madrid, scoring three goals in the process.