The manager has penned a three-year extension to his current deal, which was set to expire this summer after the FA Cup triumph, to tie him to the club until the 20-year mark.
The Frenchman agreed an extension in principle in October but, since that time, a two-year deal has become three after the Gunners returned to winning ways with triumph in the FA Cup final.
Wenger turned down a 1 million pound-per-year pay increase in March but began discussions over the summer plans for the club as he set his sights on securing a top-four finish and FA Cup glory.
Arsenal has long been confident of its legendary boss, who passed 1000 games in charge of the team this season, prolonging his spell at the Emirates Stadium, with director Lord Harris claiming in May that Wenger was "always staying".
With Champions League football secured and an end to the nine-year wait for a trophy brought about, Wenger has at last put pen to paper on a three-year extension to his terms.
"I want to stay and to continue to develop the team and the club. We are entering a very exciting period. We have a strong squad, financial stability and huge support around the world. We are all determined to bring more success to this club," Wenger told the club's official website.
"The club has always shown faith in me and I'm very grateful for that. We have gone through fantastic periods and also periods where we have had to stick together. Every time when that togetherness was tested I got the right response. I think I have shown some loyalty as well towards this club and hopefully we can make some more history. I am sure we can."
Arsenal chairman Sir Chips Keswick said: "We are delighted that Arsene has renewed his contract for a further three years. He is a man of principle, who lives and breathes Arsenal.
"He has established Arsenal for its exciting playing style around the world, continues his commitment to young players and has the ability to bring top-class players to the club. I have no doubt we have an exciting future ahead of us with him leading the team."
Arsenal's majority shareholder, Stan Kroenke, added: "Sustained excellence is the hardest thing to achieve in sport and the fact Arsenal has competed at the top of the game in England and Europe throughout the time Arsene has been manager, is the ultimate testimony to his consistency of performance, talent and ambition.
"We are delighted with the FA Cup success which has added to his already outstanding record. Under his guidance we look forward to adding more trophies in future seasons."
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