The center back's displays have improved over the last year after initially struggling to settle at the Emirates Stadium, and he says talks are underway regarding fresh terms.
The 29-year-old joined Arsenal in August 2011 and initially struggled to adapt to the pace of the Premier League - but he is now showing his best form having struck up a solid partnership with Laurent Koscielny.
Arsenal kept its ninth clean sheet of the season on Tuesday in a 2-0 win over Marseille in the Champions League, and a contented Mertesacker is hoping ongoing contract talks can bring a positive outcome.
"I am very happy here," he is quoted as saying by the Evening Standard. "The first year was tough for me, a very tough challenge, but the club and the manager always trusted me in a special way. I got a big injury in my first year, so I took my time to settle down completely and there were a lot of reasons.
"I think it is a little reward that we are talking [about a new contract], because I still have one-and-a-half years left. There is no rush but it seems that some people are delighted with my performances at the moment. I am pleased with the situation. It took me a while to get to that level. But the manager always trusted me and said I was intelligent enough to cope with problems."
Arsenal has benefited from Mertesacker's upturn in form and currently tops the Premier League table.