The full-back is hopeful that the former Manchester United star will ink a contract extension and does not fear the competition of the returning Daniel Carvajal
The Portugal international has been linked with a move away from the Santiago Bernabeu on more than one occasion, but club president Florentino Perez stated earlier this week that he expects that the attacker will remain in Madrid until the end of his career.
Ronaldo has a contract with the Liga giants until the summer of 2015, but Arbeloa is hopeful that the 28-year-old will agree new terms this year.
"The best signing Real Madrid could make would be Cristiano Ronaldo renewing his contract," the defender told La Sexta. "I hope that Cristiano will stay at Madrid for many more years."
The full-back then took the time to reflect on the return of Daniel Carvajal from Bayer Leverkusen and stressed that he does not fear the competition for places the youngster will provide.
"There has always been stiff competition for places at Madrid," he insisted. "I will only benefit from his arrival."
Carvajal, 21, left Madrid for Leverkusen in 2012, but the Spanish giants re-signed him this summer after he impressed in the Bundesliga this term.